
LME aluminium seems to be coming under a downward pressure from the price declines of its counterpart traded at Shanghai Futures Exchange. The light metal which remained unchanged at US$2,083 per tonne for two consecutive days- September 12th and 13th, came down to US$2,065 per tonne on Thursday, September 14. Shanghai Metals Market observes that LME aluminium will struggle at around the 20-day moving average and range at US$2,080-2,110 per tonne on Friday, September 15.
According to Reuters’ technical analysis, LME aluminium may retest support at $2,081 per tonne, a break below which could lead to a drop around US$2,055 per tonne in the foreseeable future.
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As on September 14, LME official cash buyer aluminium price (Bid Price) stands at US$2,064 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,065 per tonne, 3M Bid Price is US$2,090 per tonne, 3M Offer Price is US$2,090.50 per tonne, Dec3 Bid Price is US$2,218 per tonne, and Dec3 Offer Price is US$2,223 per tonne. LME aluminium Opening Stock stands at 1315775 tonnes, total Live Warrants is 1137625 tonnes, and Cancelled Warrant is 178150 tonnes. Total LME aluminium inventory stands at 1,315,775 tonnes (-1,250 tonnes).
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped marginally from US$2,482 per tonne on Thursday, September 14, to US$2,470 per tonne on Friday, September 15.
During Wednesday’s night trading, base metals at Shanghai Futures Exchange registered huge declines. The most active aluminium contract at the bourse, SHFE 1711 aluminium, nosedived to RMB 16,090 per tonne. Trading remained muted as bearish sentiment prevailed across the board. SMM predicts that SHFE 1711 aluminium may come down further to the range of RMB 16,400-16,600 per tonne on Friday, September 15.
In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 90-50 per tonne on Friday.
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