LME aluminium dips after testing resistance at around US$1,947/t, SHFE continues to fall

<p>After picking up pace on news that the OPEC countries may extend their oil output cut agreement, LME aluminium has plunged low on yesterday&rsquo;s closing as a natural trend after testing resistance at around US$1,947 per tonne. LME aluminium plunged 0.87 per cent from its previous close of US$1,943 per tonne to close at US$1,926 per tonne on Tuesday, May 23. Shanghai Metals Market forecasts that the contract will trade in the range of US$1,935-1965 per tonne on Wednesday, May 24.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/lme%2024%20may.png" alt="News" width="517" height="226" /></p> <p>As on May 23, LME official cash buyer price of aluminium stands at US$1,925.50 per tonne, cash seller &amp; settlement price is US$1,926 per tonne, 3M buyer price is US$1,928 per tonne, 3M seller price is US$1,930 per tonne, Dec1 buyer price is US$1,955 per tonne, and Dec1 seller price is US$1,960 per tonne. The current LME official Opening Stock of aluminium is estimated at 1489325 tonnes, total Live Warrants is 964300 tonnes, and Cancelled Warrant is 525025 tonnes.</p> <p>LME aluminium premiums, as on May 22, remain unchanged across major regions. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium US Premium is US$215, LME Aluminium West-Europe Premium is US$95, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).</p> <p>The benchmark aluminium price at Shanghai Metal Exchange (SME) stands at US$2,008 per tonne on Wednesday, May 24, up 0.29 per cent from the benchmark aluminium price of US$2,002 per tonne on Tuesday, May 23. Spot aluminium in China market is expected to trade at discounts of RMB 120-80/t over SHFE 1706 aluminium contract on Wednesday, May 24, SMM said.</p> <p>{googleAdsense}</p> <p>SHFE 1707 aluminium dipped to RMB 13,900/t due to short selling after opening at RMB 13,990/t on Tuesday. The most active aluminium future contract then rebounded on dip buying, but fell again to close at RMB 13,910/mt. Trading volumes decreased to 186,490 lots, and positions increased 2,030 lots to 256,148 lots. SHFE 1707 aluminium is expected to move between RMB 13,950-14,150/t today and should test support at RMB 13,900/mt during night session. &nbsp; &nbsp;</p> <p>According to SMM, Market focus will be on US crude oil stocks, US April existing home sales and Germany June Gfk consumer confidence index today.&nbsp;</p>