LME aluminium drops further; may approach next support at US$2,103/t

LME aluminium is sliding down the price graph. The light metal contract which closed at US$2,111 per tonne on Tuesday, October 17, dropped to close at US$2,106 per tonne after night trading on Wednesday, October 18. Reuters’ technical analysis suggests that LME aluminium may break a support at US$2,117 per tonne, and approach the next support level at US$2,103. A break below US$2,103 could cause a further loss to US$2,086 per tonne, while a break above US$2,130 may lead to a gain to US$2,148 per tonne in the near term.

As per Shanghai Metals Market forecast, LME aluminium will drop to US$2,105-2,130 per tonne on Thursday, October 19.

Source: www.lme.com

As on October 18, LME official cash buyer aluminium price (Bid Price) stands at US$2,106 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,106.50 per tonne, 3M Bid Price is US$2,125 per tonne, 3M Offer Price is US$2,126 per tonne, Dec1 Bid Price is US$2,172 per tonne, and Dec1 Offer Price is US$2,177 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1210325 tonnes, total Live Warrants is 969475 tonnes, and Cancelled Warrant is 240850 tonnes.

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped from US$2,423 per tonne on Wednesday, October 18, to US$2,406 per tonne on Thursday, October 19.

On Wednesday’s night trading, base metals were mixed at Shanghai Futures Exchange while aluminium futures contract prices dropped. SMM forecasts that the most active trading contract SHFE 1712 aluminium will range at RMB 15,850-16,050 per tonne on Thursday, October 19.

Spot discounts in east China’s spot aluminium market are expected to range at RMB 180-140 per tonne on Thursday, SMM said.