LME aluminium continues losing streak; SHFE aluminium looks firmer

Benchmark aluminium price on London Metal Exchange shed 0.6 per cent to touch the lowest at US$2,158 per tonne since January 9, yesterday. The light metal contract then recuperated some losses to close at US$2,181 per tonne.

Current price trend analysis by Shanghai Metals Market suggests that LME aluminium may continue to test support at the 60-day moving average and trade at US$2,145-2,170 per tonne range on Thursday, February 8.   

As on February 7, LME official cash buyer aluminium price (Bid Price) stands at US$2,180.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,181.50 per tonne, 3M Bid Price is US$2,178.50 per tonne, 3M Offer Price is US$2,179 per tonne, Dec1 Bid Price is US$2,228 per tonne, and Dec1 Offer Price is US$2,233 per tonne. LME aluminium opening stock stands at 1059875 tonnes, total Live Warrants is 841550 tonnes, and Cancelled Warrants total at 218325 tonnes.

LME aluminium Asian reference price three-months ABR is given asUS$2,189.12 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has slid from at US$2,249 per tonne on February 7 to US$2,226 per tonne on February 8.

On Shanghai Futures Exchange, the most active aluminium contract remained under pressure from the five-day moving average.  The movement of SHFE aluminium on February 7, as updated by SMM is as follows:

SMM foresees aluminium supply pressure to ease in the domestic market and downstream purchasing to increase, which could lift prices after the Chinese New Year. However, SHFE aluminium prices are expected to stay range-bound at RMB 14,250-14,450 per tonne on Thursday, February 8.

Discounts at the spot aluminium market are expected to narrow down at RMB 120-80 per tonne, today, SMM said.