
LME aluminium rallied on Wednesday, October 25, surging to its highest since March 2012. The light metal contract surged amid speculations of dwindling supply from China due to winter capacity cuts, and a weaker dollar before closing down at US$2,149.50 per tonne (up from US$2,144 per tonne on Tuesday, October 24).
After a lull of a few weeks, LME aluminium seems to be finally finding a direction. Reuters’ technical analysis suggests that London aluminium price may break above US$2,175 per tonne level triggering another bull run in the near term.
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As on October 25, LME official cash buyer aluminium price (Bid Price) stands at US$2,149 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,149.50 per tonne, 3M Bid Price is US$2,158 per tonne, 3M Offer Price is US$2,159 per tonne, Dec1 Bid Price is US$2,200 per tonne, and Dec1 Offer Price is US$2,205 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1195525 tonnes, total Live Warrants is 928800 tonnes, and Cancelled Warrant is 266725 tonnes.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange has edged higher from US$2,439 per tonne on October 25, to US$2,452 per tonne on October 26.
Aluminium prices at Shanghai Futures Exchange (SHFE) traded as below on Wednesday, October 25:

In China domestic market, there is no added traction from the consumption side; yet, supply-side shrinking is taking place. Inventories are falling and the effect of output cut is already being felt everywhere. SHFE aluminium has risen from the bottom level but is still below its recent eight-year high of RMB 17,340 per tonne. Shanghai Metals Market recommends market participants to buy the metal contracts at low points.
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