LME aluminium edges higher as market sentiment improves ahead of Trump’s address

LME aluminium reversed its recent marginal losses and gained ground as global market sentiment improved ahead of U.S. President Donald Trump’s State of Union Address on Monday, January 29. The light metal contract rose from US$2,238 per tonne on Friday, January 26, to close at US$2,251.50 per tonne after night trading yesterday.

However, pressure is building up at five-day, 10-day, and 20-day moving averages. So, Shanghai Metals Market thinks that LME aluminium may trade at US$2,210-2,260 per tonne on Tuesday, January 30.

As on January 29, LME official cash buyer aluminium price (Bid Price) stands at US$2,251 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,251.50 per tonne, 3M Bid Price is US$2,257 per tonne, 3M Offer Price is US$2,258 per tonne, Dec1 Bid Price is US$2,303 per tonne, and Dec1 Offer Price is US$2,308 per tonne. LME aluminium opening stock stands at 1085475 tonnes, total Live Warrants is 844925 tonnes and Cancelled Warrants 240550 tonnes.

The Asian reference price for LME aluminium (3-months ABR) is US$2,262.74 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has dropped from US$2,296 per tonne on January 29 to US$2,270 per tonne on January 30.

On Shanghai Futures Exchange, aluminium showed the “weakest fundamentals” in the no-ferrous bucket. The movement of SHFE aluminium on January 29 updated by SMM is as follows:

SMM analysis suggests that SHFE aluminium is likely to head southward. The average SHFE aluminium price will range at RMB 14,500-14,700 per tonne range on Tuesday, January 30.

In the spot aluminium market, discounts are expected to move at RMB 170-130 per tonne today, SMM said.