LME aluminium crosses US$2,200/t mark, but likely to fall back upon testing resistance

The benchmark aluminium price on London Metal Exchange climbed higher on Friday, February 23, to cross the US$2,200 per tonne mark as the market got direction from the return of China to trading after Lunar New Year Holidays. The light metal contract closed at US$2,210 per tonne, up from US$2,190 per tonne.

Shanghai Metals Market forecasts that LME aluminium will trade at US$2,130-2,160 per tonne range on Monday, February 26, after testing resistance at the 60-day moving average.  

As on February 23, LME aluminium cash (bid) price stands at US$2,209 per tonne, LME aluminium cash (offer) price stands at US$2,210 per tonne; 3-months bid price stands at US$2,165 per tonne, 3-months offer price is US$2,165.50 per tonne; Dec 19 bid price stands at US$2,213 per tonne, and Dec 19 offer price is US$2,218 per tonne.

The LME aluminium opening stock today stood at 1330875 tonnes, Live Warrants totalled at 1164150 tonnes, and Cancelled Warrants were 166725 tonne.

LME aluminium 3-months ABR price is hovering at US$2,193.50 per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has edged higher from US$2,202 per tonne on February 23 to US$2,205 per tonne on February 26.

On Shanghai Futures Exchange, the most active aluminium contract drew support from the ferrous metals and hit a high at RMB 14,930 per tonne during the day trading hours. The price (RMB per tonne) movement as updated by SMM is as follows:

As per SMM, SHFE aluminium is likely to perform better than its LME counterpart and trade range-bound at RMB 14,250-14,500 per tonne range on Monday.

“We see aluminium to rebound in the medium term due to the anticipation of de-stocking as demand enters the high season. However, resistance may remain at the 20-day moving average,” SMM said.

Spot discounts on aluminium are expected to be at RMB 260-220 per tonne today.