LME aluminium dips slightly after testing month’s highest; SHFE 1707 expected to rise after holidays

<p>After touching the highest for the month at US$1,954 per tonne on Thursday May 25, LME aluminium has plunged slightly low to close at US$1,950 per tonne on Friday, May 26. LME aluminium may rise during the Dragon Boat festival holiday, which will allow SHFE 1707 aluminium to rise as well after the holiday. &nbsp;According to Reuter analysis, LME&nbsp;aluminium continues to face a resistance at $1,962 per tonne, a break above which could lead to a gain to $1,969.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/LME29MAY.png" alt="News" width="517" height="226" /></p> <p>As on May 26, LME official cash buyer price of aluminium stands at US$1,949 per tonne, cash seller &amp; settlement price is US$1,950 per tonne, 3M buyer price is US$1,952.50 per tonne, 3M seller price is US$1,953.50 per tonne, Dec1 buyer price is US$1,975 per tonne, and Dec1 seller price is US$1,980 per tonne. The current LME official Opening Stock of aluminium is estimated at 1496450 tonnes, total Live Warrants is 992175 tonnes, and Cancelled Warrant is 504275 tonnes.</p> <p>LME aluminium premiums, as on May 25, 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$2,033 per tonne on Friday, May 26, up 0.29 per cent from the benchmark aluminium price of US$2,010 per tonne on Thursday, May 25.</p> <p>{googleAdsense}</p> <p>As reported by SMM, SHFE 1707 aluminium dipped to RMB 14,040/mt after opening at RMB 14,080/mt on Friday. But, the most active contract then rebounded to RMB 14,110/mt, ending at RMB 14,085/mt. Trading volumes decreased to 123,000 lots to 152,000 lots, and positions decreased 7,538 lots to 212,262 lots.</p> <p>According to an SMM report, this week, there will be only three trading days on the SHFE for the 2017 Chinese Dragon Boat Festival from May 28-30. Tight month-end liquidity will impede the sustainability of price gain, and base metals are expected to stage range-bound trading.</p>