
Aluminium contracts traded on the London Metal Exchange (LME) and major commodity exchanges of Shanghai kept diverging on Thursday. While LME aluminium dropped after rising at US$1,881 per tonne on Wednesday, Shanghai Metal Exchange (SME) benchmark price of aluminium edged higher at US$1,957 per tonne on Friday, March 10. LME aluminium closed at US$1,847 per tonne on Thursday, March 9, down 1.8 per cent from the previous day's close. Shanghai Metals Market (SMM) in its forecast says the contract will find support at the 40-day moving average and trade at US$1,860-1,890 per tonne on Friday.
As on March 9, LME official cash buyer price of aluminium stands at US$1,846.50 per tonne, cash seller & settlement price is US$1,847 per tonne, 3M buyer price is US$1,855 per tonne, 3M seller price is US$1,855.50 per tonne, Dec1 buyer price is US$1,900 per tonne, and Dec1 seller price is US$1,905 per tonne. The current LME official Opening Stock of aluminium is estimated at 2084800 tonnes, total Live Warrants is 1298250 tonnes, and Cancelled Warrant is 786550 tonnes.
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As on March 8, LME Aluminium US Premium stands at US$215, LME Aluminium West-Europe Premium remains unchanged at US$95, LME Aluminium East-Asia Premium has inched higher at US$100 and LME Aluminium South-East Asia Premium is again unchanged at US$15 (per tonne).
Aluminium contracts traded on Shanghai Futures Exchange (SHFE) edged higher from their same day opening price diverging from their LME counterparts on Thursday. The last available delayed quotes of SHFE 1703 aluminum, SHFE 1704 aluminum, and SHFE 1705 aluminum on Shanghai Futures Exchange are RMB 13,590 per tonne, RMB 13,685 per tonne, and RMB 13,775 per tonne respectively. The changes from their opening quotes were +45, +40, and +35 units respectively.
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SMM predicts SHFE 1705 aluminum will fluctuate between RMB 13,550-13,850 per tonne in the near term. Spot aluminium in China's domestic market is expected to trade at discounts of RMB 120-80 per tonne on Friday.
Eyes should be on February nonfarm payroll report of the US, unemployment data and salary growth, observes SMM.
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