
LME aluminium is finding it difficult to hold ground above US$1,900 per tonne. The light metal which edged higher to US$1,904 per tonne on August 2, from its earlier close of US$1,887 per tonne on August 1, has again slid back to US$1,892 per tonne after night trading on Thursday, August 3. Reuters’ technical analysis suggests that LME aluminium is biased to break a support at US$1,909 per tonne, and fall towards the next support at US$1,896 per tonne.
According to Shanghai Metals Market forecast, LME aluminium should continue to struggle around the moving average and range at US$1,910-1,922 per tonne on Friday, August 4.
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As on August 3, LME official cash buyer aluminium price (Bid Price) stands at US$1,891 per tonne, cash seller & settlement aluminium price (Offer price) is US$1,891.50 per tonne, 3M Bid Price is US$1,915 per tonne, 3M Offer Price is US$1,916 per tonne, Dec1 Bid Price is US$1,962 per tonne, and Dec1 Offer Price is US$1,967 per tonne. LME aluminium Opening Stock stands at 1336700 tonnes, total Live Warrants is 1045800 tonnes, and Cancelled Warrant is 290900 tonnes.
LME aluminium premiums remain unchanged across major regions globally. As on August 3, LME aluminium premium for the U.S. stands at US$165, LME Aluminium West-Europe Premium stands at US$80, LME Aluminium East Asia Premium remains unchanged at US$15, and LME Aluminium South-East Asia Premium is US$15 (per tonne).
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) stands unchanged at US$2,152 per tonne on Friday, August 4.
At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1710 aluminium ranged at RMB 14,600-14,760 per tonne. Aluminium stocks in five major China markets rose high totalling at 1.33 million tonnes. SMM predicts that SHFE 1710 aluminium will hover in its current range of RMB 14,600-14,760 per tonne on Friday, August 4.
Spot aluminium in east China market is expected to trade at discounts of RMB 170-120 per tonne over SHFE 1708 aluminium on Friday.
The market focus will be on US nonfarm payrolls, unemployment data and hourly wage rate, and the US dollar index movement on Friday, SMM said.
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