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06 JANUARY 2017 AL CIRCLE

LME aluminium edges higher, but Shanghai aluminium to stay weak due to a strong dollar

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium diverged from falling crude oil prices on Thursday ending marginally higher at US$1,709 from the previous day's closing. Unlike aluminium other base metals fell across the boards as one of the key indicators, crude oil price, lost its overnight surge. Crude oil futures rallied to their highest level in 18 months on Tuesday.

Shanghai Metals Market forecast says LME aluminium will test support at US$1,700 per tonne and will hover in the range of US$1,690-1,715 per tonne on Friday.

As on January 5, LME official cash buyer price of aluminium stands at US$1,709 per tonne, CASH Seller & Settlement price is US$1,709.5 per tonne, 3M Buyer price is US$1,701 per tonne, 3M Seller price is US$1,701.5 per tonne, DEC1 Buyer price is US$1,750 per tonne, and DEC1 Seller price is US$1,755 per tonne. The current LME official opening stock of the metal stands at 2196475 tonnes, total live warrants is 1554100 tonnes, and cancelled warrant is 668350 tonnes.

News
In China, benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,835 per tonne on Friday, January 6. The contract has edged higher from the previous day benchmark price of US$1,833 per tonne.

Base metal prices on the Shanghai Futures Exchange are expected to stay weak on Friday, SMM predicts. SHFE 1705 aluminium will keep fluctuating at RMB 12,520-12,720 per tonne.

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


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EDITED BY : DIPANWITA GUPTA 2MINS READ

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