After picking up pace on news that the OPEC countries may extend their oil output cut agreement, LME aluminium has plunged low on yesterday’s closing as a natural trend after testing resistance at around US$1,947 per tonne. LME aluminium plunged 0.87 per cent from its previous close of US$1,943 per tonne to close at US$1,926 per tonne on Tuesday, May 23. Shanghai Metals Market forecasts that the contract will trade in the range of US$1,935-1965 per tonne on Wednesday, May 24.
{alcircleadd}As on May 23, LME official cash buyer price of aluminium stands at US$1,925.50 per tonne, cash seller & settlement price is US$1,926 per tonne, 3M buyer price is US$1,928 per tonne, 3M seller price is US$1,930 per tonne, Dec1 buyer price is US$1,955 per tonne, and Dec1 seller price is US$1,960 per tonne. The current LME official Opening Stock of aluminium is estimated at 1489325 tonnes, total Live Warrants is 964300 tonnes, and Cancelled Warrant is 525025 tonnes.
LME aluminium premiums, as on May 22, 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) stands at US$2,008 per tonne on Wednesday, May 24, up 0.29 per cent from the benchmark aluminium price of US$2,002 per tonne on Tuesday, May 23. Spot aluminium in China market is expected to trade at discounts of RMB 120-80/t over SHFE 1706 aluminium contract on Wednesday, May 24, SMM said.
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SHFE 1707 aluminium dipped to RMB 13,900/t due to short selling after opening at RMB 13,990/t on Tuesday. The most active aluminium future contract then rebounded on dip buying, but fell again to close at RMB 13,910/mt. Trading volumes decreased to 186,490 lots, and positions increased 2,030 lots to 256,148 lots. SHFE 1707 aluminium is expected to move between RMB 13,950-14,150/t today and should test support at RMB 13,900/mt during night session.
According to SMM, Market focus will be on US crude oil stocks, US April existing home sales and Germany June Gfk consumer confidence index today.
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