LME aluminium prices took a hit as US dollar index rallied on Tuesday's night trading. The contract underperformed and dropped below the 40-day moving average closing at US$1,718/mt on Tuesday, down 0.58 per cent from previous day's closing at US$1,728/mt.
According to Shanghai Metals Market forecast, LME aluminium will test US$1,700/mt and will range at US$1,695-1,720/mt on Wednesday, December 7.
As on December 6, LME official 3M Buyer price of aluminium is US$1712.5/mt, 3M Seller price is US$1713/mt, DEC1 Buyer price is US$1727/mt, and DEC1 Seller Price is US$1732/mt. LME Official Opening stock of the metal currently stands at 2129200 mt, total Live Warrants is recorded as 1384875 mt, and Cancelled Warrant is estimated at 733450 mt.
In China, SME aluminium opened at US$1,955/mt on Wednesday, down 2.34 per cent from yesterday's opening price of US$2,002/mt.
SHFE 1702 aluminium fell below the 40-day moving average on Wednesday and will decline below RMB 13,000/mt in the future, foresees SMM. The contract is predicted to move between RMB 12,950-13,150/mt on Wednesday.
Spot aluminium in China’s domestic market should trade at discounts of RMB 70-30/mt on Wednesday, SMM says.
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A series of economic data is awaiting release today, which includes crude oil data, a major indicator for the commodity prices. Analysts say, aluminium prices will likely follow a weker trend due to soft fundamentals, but other strong base metals may support the light metal price for the short term with market expectation over inflation and falling Chinese yuan.
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