LME Aluminium closes with gains but SMM says volatility will persist across the board

<p>LME aluminium seems to be moving into a volatile range. The contract after trading at around US$1,718/mt on Tuesday, closed with gains at US$1,728/mt after Wednesday's night trading. Rising oil prices which climbed to a 16-month high after OPEC agreed to trim output, last week, by 1.2 million bbl/day buoyed the base metal price up on the global exchange though with intermittent slides. <br /><br />According to Shanghai Metals Market, LME aluminium should range between US$1,695-1,725/mt on Thursday. <br /><br />As on December 7, LME official opening stock of aluminium stands at 2118325mt, total Live Warrants is estimated at 1384875mt and Cancelled Warrant is estimated at 728500mt. The current Cash Buyer price of aluminium is US$1727.5/mt and Cash Seller &amp; Settlement price is US$1728/mt.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20Aluminium%20(5).jpg" alt="News" width="517" height="226" /><br />In China, aluminium on Shanghai Metal Exchnage fell 1.68 per cent to open at US$1,922/mt on Thursday. <br /><br />&ldquo;Price divergence was expanding in base metal market after weakening across the board overnight, and price volatility is expected to grow on Thursday,&rdquo; says SMM. <br /><br />SHFE 1702 aluminum fluctuated at RMB 13,000/mt with volatile Chinese yuan on Tuesday. The contract is expected to test RMB 13,000/mt on Thursday and will move at RMB 12,900-13,150/mt.<br /><br />Spot aluminium in China's domestic market should trade at discounts of RMB 140-100/mt on Thursday, SMM foresees.<br /><br />{googleAdsense}<br /><br />A quick look at the key macroeconomic factors for Thursday: European Central Bank President Draghi will be announcing his decision on Eurozone December&rsquo;s interest rate today. China&rsquo;s trade balance in November and the US initial jobless claim from the week ending December 2 will also be released Thursday. Any decision to be made by ECB will affect currency market significantly, leading to volatile commodity market, says SMM.</p>