LME aluminium down by 1.18%; to trade neutrally in US$2,127-2,154 range

LME aluminium failed to hold ground at/around its recent price gain and fell by 1.18 per cent from its previous close at US$2,159 per tonne on Friday, October 20. The light metal contract closed at US$2,133.50 per tonne on Monday, October 23.

Reuters’ technical analysis suggests that LME aluminium will trade neutrally in the range of US$2,127-US$2,154 per tonne, and is likely to escape a direction in the near term. A break above US$2,154 could lead to a gain to US$2,171 per tonne. If the metal manages to rise to $2,171, a bullish wedge could be confirmed and LME aluminium could revisit the high at $2,199 per tonne. The price trend seems to be biased towards the upside.

As on October 23, LME official cash buyer aluminium price (Bid Price) stands at US$2,132.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,133.50 per tonne, 3M Bid Price is US$2,144 per tonne, 3M Offer Price is US$2,145 per tonne, Dec1 Bid Price is US$2,188 per tonne, and Dec1 Offer Price is US$2,193 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1199675 tonnes, total Live Warrants is 959075 tonnes, and Cancelled Warrant is 240600 tonnes.                              

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has inched higher from US$2,431 per tonne on October 23, to US$2,437 per tonne on October 2.

Aluminium prices at Shanghai Futures Exchange (SHFE) have adjusted back to the 5-day moving average on the back of falling ingot inventories. On Monday’s night trading, SHFE aluminium tested the support and kept volatile. Aluminium ingot inventories dropped primarily because downstream manufacturers are stocking up at low prices and reduced stock due to the 19th CPC National Congress.