After registering some gains at the start of the New Year, LME aluminium is on a downward trend driven by dollar’s uptrend and higher Chinese inventory. The support of the 10-day moving averages became weaker for LME aluminium and Shanghai Metals Market expects the light metal contract to trade at $2,190-2,229/t today.
The LME aluminium contract fell further from US$2,230 per tonne on January 4 and closed the first week of January at US$ 2205.5per tonne on January 5, Friday.
As on January 5, LME official cash buyer aluminium price (Bid Price) stands at US$2,205 per tonne, cash seller & settlement aluminium price (Offer price) is US$2205.5 per tonne, 3M Bid Price is US$2224.50per tonne, 3M Offer Price is US$2225per tonne, Dec1 Bid Price is US$2300per tonne, and Dec1 Offer Price is US$2305per tonne. LME aluminium opening stock stands at 1099475 tonnes, total Live Warrants is 849725 tonnes and Cancelled Warrants 249750 tonnes.
The Asian reference price for LME aluminium (3-months ABR) is US$ 2247.18per tonne.
The benchmark aluminium price on Shanghai Metal Exchange (SME) has dropped from US$US$2,281 per tonne on January 4 to US$2,268 per tonne on January 5.
According to SMM, SHFE aluminium may see further downward movement due to weak fundamentals. Analysts expect prices to move between RMB 14,850 per tonne and RMB 15,350 per tonne next week. SHFE aluminium is expected to trade at RMB 14,970-15,140 per tonne today. Spot discounts are to move at RMB 200-160 per tonne.
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