
LME aluminium price rise met resistance on Tuesday as the contract slid marginally by 0.38 per cent to close at US$1,805 per tonne after night trading yesterday. Prior to this LME aluminium has been rising for 6 days at a stretch. The marginal drop which is indicative of a short-term range-bound trading is in correlation with Monday's falling oil futures after exports from Iraq reached record highs and US drilling activity rose sowing doubts over the effectiveness of a proposed output cut by the OPEC.
Shanghai Metals Market says LME aluminium will leave its rising momentum behind and hover in the range of US$1,788-1,810 per tonne on Wednesday, January 18.
As on January 17, LME official cash buyer price of aluminium stands at US$1,575 per tonne, cash seller & settlement price is US$1,585 per tonne, 3M buyer price is US$1,590 per tonne, 3M seller price is US$1,1600 pe tonne, Dec1 buyer price is US$1,615 per tonne, and Dec1 seller price is US$1,625 per tonne. The current LME official Opening Stock of aluminium is estimated at 13280 tonnes, total Live Warrants is 13260 tonnes, and Cancelled Warrant is 20 tonnes. 
In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,920 per tonne on Tuesday, up 0.15 per cent from US$1,917 per tonne on Monday.
All aluminium contracts traded on Shanghai Futures Exchange lost grounds on Tuesday with their positions falling by 17,816 to 668,390. SHFE 1703 aluminium regained some strength during the second half of the day to finally close at RMB 13,320 per tonne. The contract will move at RMB 13,200-13,400 per tonne on Wednesday, predicts SMM.
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Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 120-80 per tonne on Wednesday.
“Base metals overnight closed lower across the board, and capitals will likely flow out of the market with nearing of 2017 Chinese New Year holiday, and Shanghai prices are expected to keep diverging,” SMM says.
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