LME aluminium consolidates after a marginal dip; SHFE raises trading margin

As market recovered from the knee-jerk reaction of the US presidential elections, LME aluminium prices showed some relaxation and came down marginally to trade at US$1,736/mt on Thursday, November 10. But, analysts believe the dip in the lightmetal prices is not going to continue, and they will soon join the league of other base metals which remained strong overnight and are expected to consolidate at highs today. The LME Cash Buyer price of the contract currently stands at US$1772.00/mt.

According to an SMM forecast, LME aluminium is expected to move between US$1,760-1,785/mt on Friday, November 11. “Bullish sentiment remains in base metal market, so price gains are expected to be continuing, and price divergence is also expected to be big,” SMM says.

LME official opening stock of aluminium presently stands at 2111650mt.


In China, aluminium traded on Shanghai Metals Exchange closed at US$2,234/mt after Thursday’s night trading.

Aluminium traded on Shanghai Futures Exchange as SHFE 1701 opened at RMB 13,945/mt on Thursday and surged to its daily upward limit at RMB 14,060/mt with strengthening of long momentum. Later, the contract fell below its daily upward limit and stabilized, hurt by leaving of longs. Cash liquidity remains strong in China’s money market.

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SHFE announced to raise trading margins on Thursday, weighing down base metals. SHFE 1701 aluminium will range at RMB 13,950-14,250/mt on Friday with market wary sentiment, says SMM.  Margins for SHFE aluminium will be raised from 5 per cent to 8 per cent, with their daily movement limits up from 4 per cent to 6 per cent.

Spot aluminium in China’s domestic market should trade at premiums of RMB 240-280/mt on Friday.