
After having crossed the US$2,200 per tonne mark last Friday, LME aluminium dropped again on Monday, February 27, as nearby aluminium spreads came under intense pressure. The light metal contract closed at US$2,188.50 per tonne, down from US$2,210 per tonne on February 23.
Shanghai Metals Market opines that with pressure still there from short bets, LME aluminium will continue to test resistance at the 60-day moving average and move within the US$2,152-2,165 per tonne range on Tuesday, February 27.
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As on February 26, LME aluminium cash (bid) price stands at US$2,188 per tonne, LME aluminium cash (offer) price stands at US$2,188.50 per tonne; 3-months bid price stands at US$2,159.50 per tonne, 3-months offer price is US$2,160.50 per tonne; Dec 19 bid price stands at US$2,212 per tonne, and Dec 19 offer price is US$2,217 per tonne.
The LME aluminium opening stock today stood at 1326825 tonnes, Live Warrants totalled at 1106325 tonnes, and Cancelled Warrants were 220500 tonne.
LME aluminium 3-months ABR price is hovering at US$2,154.47 per tonne.
Aluminium premiums:
Aluminium premiums are hovering at 2-year highs. The premiums climbed to 14.5 cents per tonne last week, the highest since April, 2015.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange has edged higher from US$2,205 per tonne on February 26 to US$2,215 per tonne on February 27.
On Shanghai Futures Exchange, the most active aluminium contract touched a low of RMB 14,195 per tonne during morning trading hours yesterday as inventories rose to record highs. It firmed up later during the day. The price movement as updated by SMM is as follows:

As per SMM, SHFE aluminium is likely to go up if alumina price declines remain within market expectations. Coal prices have already increased driving production cost of aluminium up. SHFE aluminium contract is expected to test the five- and 10-day moving averages and trade at RMB 14,100-14,300 per tonne on Tuesday, February 27.
Spot discounts on aluminium are expected to be at RMB 240-200 per tonne today.
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