Dollar weakens to provide LME aluminium a breather; price jumps to US$2,143/t

December U.S. dollar index traded lower on Monday, October 30, lifting LME aluminium from its last weekend low. The light metal contract edged higher to close at US$2,143 per tonne after yesterday’s night trading, up from US$2,119 per tonne on October 27. Reuters’ technical analysis suggests that LME aluminium may retest a resistance at US$2,196 per tonne, which means, there is a wide room for the contract to rise in the near term.  

The price wave pattern also reveals a support at US$2,148 per tonne. A break below this level could cause a loss to US$2,125 per tonne.

As on October 30, LME official cash buyer aluminium price (Bid Price) stands at US$2,142 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,143 per tonne, 3M Bid Price is US$2,160 per tonne, 3M Offer Price is US$2,161 per tonne, Dec1 Bid Price is US$2,203 per tonne, and Dec1 Offer Price is US$2,208 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1193925 tonnes, total Live Warrants is 943150 tonnes, and Cancelled Warrant is 250775 tonnes.                              

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has inched higher from US$2,423 per tonne on October 30, to US$2,427 per tonne on October 31.

On Monday’s night trading the base metal complex on Shanghai Futures Exchange traded differently. Shanghai Metals Market thinks the prices will keep swinging in a wide range in the near term. The most active contract SHFE 1712 aluminium is expected to range at RMB 16,250-16,400 per tonne on Tuesday, October 31.

China aluminium stocks in seven major markets rose as a result of muted downstream purchasing, SMM reported.