LME aluminium edges higher; likely to remain range-bound this week

Benchmark aluminium price on London Metal Exchange inched higher on Friday, February 2, as dollar weakened and market sentiments were moderately favourable. The light metal contract closed at US$2,228 per, up from US$2,218 per tonne on Thursday, February 1.

Shanghai Metals Market (SMM) foresees range-bound trading in LME aluminium; says the contract will trade at US$2,210-2,240 per tonne range on Monday, February 5.

As on February 2, LME official cash buyer aluminium price (Bid Price) stands at US$2,227 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,228 per tonne, 3M Bid Price is US$2,226 per tonne, 3M Offer Price is US$2,227 per tonne, Dec1 Bid Price is US$2,275 per tonne, and Dec1 Offer Price is US$2,280 per tonne. LME aluminium opening stock stands at 1077650 tonnes, total Live Warrants is 843375 tonnes, and Cancelled Warrants total at 233875 tonnes.

LME aluminium Asian reference price three-months ABR is given asUS$2,228.44 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has dropped from US$2,263 per tonne on February 2 to US$2,241 per tonne on February 5.

On Shanghai Futures Exchange, the most active aluminium contract traded low under sluggish fundamentals.  The movement of SHFE aluminium on February 2, as updated by SMM is as follows:

SMM analysis suggests that sluggishness in the market will continue in the near term. SHFE aluminium will stay fairly unchanged at RMB 14,250-14,450 per tonne range on Monday, February 5.

In the spot aluminium market, discounts are expected to move at RMB 140-100 per tonne today.