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05 JANUARY 2017 AL CIRCLE

LME aluminium drops while Shanghai aluminium moves higher on increased trading volume

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium dropped marginally on Wednesday to close at US$1,701 per tonne after the day's night trading. The drop, though only 0.05 per cent from the previous day's closing of US$1,702 per tonne, indicates at further short-term fluctuations within the range of US$1,675-1,695 per tonne on Thursday, December 5. Shanghai Metals Market observes, the market focus will be on the analysis of the US Federal Reserve's minutes of meeting held in December and the US’s ADP and PMI to be released on Thursday.

As on January 4, the LME official cash buyer price of aluminium stands at US$1,700 per tonne, cash seller & settlement price is US$1,701 per tonne, 3M buyer price is US$1,688 per tonne, 3M seller price is US$1,688.5 per tonne, Dec1 buyer price is US$1,735 per tonne, and Dec1 seller price is US$1,740 per tonne. The LME official opening stock of the metal is estimated at 2202175 tonnes, total live warrants is 1523725 tonnes and Cancelled Warrant is 672750 tonnes.
News       SME Price Source: http://en.shmet.com

In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,833 per tonne on Thursday, up 0.5 per cent from the previous day. Most of the metals on the bourse opened slightly down but then rallied on Wednesday.

In Shanghai Futures Exchange, SHFE 1703 aluminium closed at RMB 12,680 per tonne after gaining some lost ground from the same day opening at RMB 12,605 per tonne. This was possible due to the exit of longs, SMM observed. Trading volumes jumped to 128,864 lots through the day.  

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The contract is predicted to challenge resistance at the 5 and 10-day moving averages due to positive sentiment, supported by the tight transport capacity, but it will be difficult to break through the resistance. SHFE 1703 aluminium, on Thursday, is expected to move within the range of RMB 12,620-12,780 per tonne.

Spot aluminium, in China's domestic market should trade at premiums of RMB 40-80 per tonne on Thursday, says SMM.

Tagged with:

Aluminium Price LME China SMM

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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