LME aluminium drops further while SHFE aluminium shows range-bound trading

LME aluminium dropped for the second day in a row even after dollar index touched 3-year low on broad-based weakness. The light metal contract came down from US$2,235 per tonne on Monday, January 22, to close at US$2,213.50 per tonne on Tuesday, January 23.

Shanghai Metals Market analysis suggests that LME aluminium will trade at US$2,205-2,245 range on Wednesday, January 24, with support at the moving averages.  

As on January 23, LME official cash buyer aluminium price (Bid Price) stands at US$2,213 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,213.50 per tonne, 3M Bid Price is US$2,217 per tonne, 3M Offer Price is US$2,218 per tonne, Dec1 Bid Price is US$2,262 per tonne, and Dec1 Offer Price is US$2,267 per tonne. LME aluminium opening stock stands at 1086200 tonnes, total Live Warrants is 836500 tonnes and Cancelled Warrants 249700 tonnes.

The Asian reference price for LME aluminium (3-months ABR) is US$2,243.22 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has inched higher from US$2,247 per tonne on January 23 to US$2,257 per tonne on January 24.

Aluminium contracts on Shanghai Futures Exchange remained range-bound yesterday. The movement of SHFE aluminium on January 23, as updated by SMM is as follows:

SHFE aluminium is expected to follow the price trend of LME aluminium and trade range-bound at RMB 14,560-14,760 per tonne on Wednesday, January 24.

In the spot aluminium market, discounts are expected to move at RMB 180-140 per tonne today.