LME aluminium continues to fluctuate within a narrow range; to test support at US$2,200/t

Aluminium prices on London Metal Exchanges were lower on Tuesday, January 30, after the base metal complex registered a price correction from its recent gains. LME aluminium came down from US$2,251.50 per tonne (closing price on January 29) to close at US$2,229 per tonne yesterday.  

Shanghai Metals Market (SMM) forecasts that LME aluminium will test support at US$2,200 per tonne level and trade within a narrow range of US$2,220-2,250 per tonne on Wednesday, January 31.

As on January 30, LME official cash buyer aluminium price (Bid Price) stands at US$2,228 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,229 per tonne, 3M Bid Price is US$2,225 per tonne, 3M Offer Price is US$2,226 per tonne, Dec1 Bid Price is US$2,272 per tonne, and Dec1 Offer Price stands at US$2,277 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has slipped from US$2,270 per tonne on January 30 to US$2,252 per tonne on January 31.

On Shanghai Futures Exchange, the most active aluminium contract touched a 45-day low yesterday as fundamentals were bearish. The movement of SHFE aluminium on January 30, as updated by SMM is as follows:

SMM analysis suggests that SHFE aluminium may follow its LME counterpart and test support at RMB 14,500 per tonne level today. The contract may even move downwards as US dollar stabilizes.

In the spot aluminium market, discounts are expected to move at RMB 140-100 per tonne on Wednesday, January 31, SMM said.