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13 SEPTEMBER 2017 AL CIRCLE

LME aluminium drops, but may retrace to US$2,114/t before testing resistance

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium continues to move widely. The light metal which ended at US$2,100.50 per tonne on Monday, September 11, came down to US$2,083 per tonne on Tuesday, September 12. However, the uptrend in aluminium prices is not over yet. According to Reuters’ technical analysis, LME aluminium will rise and retrace to US$2,114 per tonne before testing a resistance at US$2,148 per tonne.

Shanghai Metals Market observes that LME aluminium will not break through the resistance unless aluminium prices at Shanghai Futures Market register a significant rise. According to SMM forecast, LME aluminium will range at US$2,125-2,148 per tonne on Wednesday, September 13.

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As on September 12, LME official cash buyer aluminium price (Bid Price) stands at US$2,082.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,083 per tonne, 3M Bid Price is US$2,117 per tonne, 3M Offer Price is US$2,117.50 per tonne, Dec3 Bid Price is US$2,243 per tonne, and Dec3 Offer Price is US$2,248 per tonne. LME aluminium Opening Stock stands at 1318950 tonnes, total Live Warrants is 1152250 tonnes, and Cancelled Warrant is 166700 tonnes. Total LME aluminium inventory stands at 1,318,950 tonnes (-1,100 tonnes).

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has edged higher from US$2,473 per tonne on Tuesday, September 12, to US$2,501 per tonne on Wednesday, September 13.

During Tuesday’s night trading, base metals at Shanghai Futures Exchange showed split trading. While SHFE aluminium contracts rose, other base metals registered huge declines.  SMM predicts that the most active aluminium contract on the bourse SHFE 1711 aluminium will advance further to RMB 16,630-16,820 per tonne range on Wednesday, September 13, despite caution regarding longs.

In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 120-80 per tonne on Wednesday.  

India MCX Aluminium Price Trend

The aluminium futures contract at India’s Multi Commodity Exchange has been trading volatile in the range of INR132-INR135 per kg. MCX aluminium recently tumbled from a high of INR 136.2 per kg on September 4 to INR 132.3 per kg last week. Technically, the contract seems to trading around the 21-day moving average in the short term.  

Tagged with:

Price LME SMM

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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