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14 DECEMBER 2017 AL CIRCLE

LME aluminium continues to be volatile; range-bound trading forecasted in the near term

EDITED BY : DIPANWITA GUPTA 2MINS READ

In absence of inventory support, which has been increasing of late and rising aluminium exports from China, LME aluminium failed to stay above the US2,000 per tonne mark. After rising to US$2,004 per tonne on Tuesday, December 12, the light metal contract again dropped to US$1,997 per tonne on Wednesday, December 13. Technical trend analysis suggests that the downward pressure will persist on LME aluminium in the medium term, and the contract will trade range-bound within US$2,000-2,025 per tonne on Thursday, December 14.

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As on December 13, LME official cash buyer aluminium price (Bid Price) stands at US$1,996.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$1,997 per tonne, 3M Bid Price is US$2,015 per tonne, 3M Offer Price is US$2,015.50 per tonne, Dec1 Bid Price is US$2,063 per tonne, and Dec1 Offer Price is US$2,068 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1109725 tonnes, total Live Warrants is 887550 tonnes, and Cancelled Warrant is 222175 tonnes.   

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has increased from US$2,106 per tonne on December 13 to US$2,115 per tonne on December 14.  

The price movement of SHFE aluminium on December 13 as updated by Shanghai Metals Market was as follows:

Aluminium contracts on Shanghai Futures Exchange remained volatile on Wednesday. The main contract of SHFE aluminium is likely to move in the range of RMB 14,150-14,300 per tonne on Thursday, December 14, SMM forecasts. The spot premium is likely to be at a discount of RMB 140-100 per tonne today.


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EDITED BY : DIPANWITA GUPTA 2MINS READ

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