A fluctuating, weak dollar to support LME aluminium prices at highs on Monday

LME aluminium has been increasing steadily over the last few days. On Friday, after night trading, the contract closed at US$1,790.5 per tonne, inching higher by 0.13 per cent from the previous closing of US$1,788 per tonne on Thursday. Shanghai Metals Market predicts LME aluminium will keep rising higher on Monday, January 16, and will move in the range of US$1,810-1,830 per tonne. A fluctuating US dollar index near the lows is responsible for the rise in base metals.

“The dollar now fluctuates at lows, and this will support base metal prices, but with possible declines technically,” SMM says.

Iraq has also confirmed cut in oil output. So, crude oil prices will expectedly rise higher supporting the accelerating base metals on the bourse.

As on January 13, LME official cash buyer price of aluminium stands at US$1,790 per tonne, cash seller & settlement price is US$1,790.5 per tonne, 3M buyer price is US$1,791 per tonne, 3M seller price is US$1,792, Dec1 buyer price is US$1,835 per tonne, and Dec1 seller price is US$1,840 per tonne. The current LME official Opening Stock of aluminium is estimated at 2248875 tonnes, total Live Warrants is 1601675 tonnes, and Cancelled Warrant is 642500 tonnes.

LME Premiums stand where they were on January 10. As on January 12, the US Premium stands at US$180, LME Aluminium West-Europe Premium is US$75, LME Aluminium East-Asia Premium is US$90 and LME Aluminium South-East Asia Premium is US$15.

In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,914 per tonne on Monday, down 0.72 per cent from US$1,928 per tonne on Friday.

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Aluminium traded on Shanghai Futures Exchange is predicted to hover at at RMB 13,350-13,550 per tonne on Monday. SHFE 1703 aluminum closed at RMB 13,395 per tonne on Friday.

Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 120-80 per tonne on Monday.