01 NOVEMBER 2016AlCircle.com
LME aluminium drops after a seven-day rise, range-bound trading expected with mixed factors
Edited by : Beethika Biswas
2 min read
<p>The entire base metal market including aluminium is on a bullish mode. LME three month aluminium prices are finally jumping on the bandwagon hitting a 15-month high as energy prices rise and demand boosts up.</p>
<p>On Tuesday’s night trading, the contract traded on LME dropped marginally with positions closing by longs after a seven-day rise and the contract is expected to hover at USD 1,715-1,740/mt on Wednesday with mixed factors, said SMM in an early morning forecast.</p>
<p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20ALUMINIUM.jpg" alt="" width="448" height="335" /></p>
<p>On Monday October 31, 3 months Aluminium traded on London Metal Exchange closed at US$1724.00/mt and the Cash contract closed at US$1723.00/mt. Analysts are of the view that prices shot up broadly in commodity markets throughout on both good incoming data and a weakening dollar. Declining inventory in China’s major markets is another factor to boost prices.</p>
<p>3 months Aluminium Alloy traded on London Metal Exchange closed at US$1590.00/mt and the Cash contract closed at US$1575.00/mt .</p>
<p>LME aluminium is expected to hover at a high in the current week.</p>
<p>LME aluminium official opening stock currently stands at 2141300 tonnes which also shows a decline. </p>
<p>LME Aluminium US Premium contract remains flat at US$ 150.00/mt and the same goes for LME Aluminium East-Asia Premium and South-East Asia Premium which settled at a very low range of US$ 65.00/mt and US$ 15.00/mt respectively.</p>
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<p>In China, on Monday’s night trading, SHFE 1612 aluminium started at RMB 14,145/mt and finally closed at RMB 14,170/mt. On Tuesday, SHFE 1612 aluminium opened at RMB 14,165/mt and fluctuated in a small range before closing at RMB 14,115/mt. SHFE 1612 aluminium should hover at highs for the short term.</p>
<p>SHFE 1612 aluminium will test RMB 14,000/mt on Wednesday and move between RMB 13,900-14,100/mt, with market players becoming wary, forecasted SMM.</p>
<p>In China’s spot market, aluminium should trade at premiums of RMB 260-300/mt over SFHE 1611 aluminium on Wednesday, SMM added.</p>
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