LME aluminium to edge higher while range-bound trading expected in SHFE aluminium

LME aluminium prices climbed higher drawing support from a vulnerable US dollar index that has been on a decline since the beginning of this week. The light metal contract rose by 0.74 per cent from Tuesday’s close of US$1,943 per tonne to end at US$1,957.50 per tonne on Wednesday, April 26. Shanghai Metals Market (SMM) predicts that the LME aluminium will rise further up to US$1,955-1,985 per tonne on Thursday, April 27.

As on April 26, LME official cash buyer price of aluminium stands at US$1,957 per tonne, cash seller & settlement price is US$1,957.50 per tonne, 3M buyer price is US$1,963.50 per tonne, 3M seller price is US$1,964 per tonne, Dec1 buyer price is US$2,000 per tonne, and Dec1 seller price is US$2,005 per tonne. The current LME official Opening Stock of aluminium is estimated at 1655825 tonnes, total Live Warrants is 981500 tonnes, and Cancelled Warrant is 674325 tonnes.

LME aluminium premiums, as on April 25, remain unchanged across major regions. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium US Premium is US$215, LME Aluminium West-Europe Premium is US$95, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dipped marginally today, on April 27. It stands at US$2,055 per tonne, down 0.33 per cent from Wednesday's benchmark aluminium price of US$2,062 per tonne.

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Aluminium futures contracts traded on Shanghai Futures Exchange (SHFE) failed to break through its daily moving average of RMB 14,500 per tonne on Wednesday, April 26. SHFE 1706 aluminium opened at RMB 14,440 per tonne and then jumped to RMB 14,500 per tonne. Later, the prices fell back to below its daily moving average as they failed to break through RMB 14,500 per tonne challenge. SMM says SHFE 1706 aluminium will move at RMB 14,300-14,500 per tonne on Thursday, April 27.

Spot aluminium in China's domestic market is projected to trade at discounts of RMB 170-130 per tonne over SHFE 1705 aluminium on Thursday.

The macroeconomic data calendar on Thursday features the release of the China’s January-March profit data at large industrials, US March durable goods orders, seasonally adjusted pending home sales data in March and the number of initial jobless claims in the US last week. Base metal prices are expected to continue diverging today, SMM says.