
LME aluminium has been on an uptrend for better part of the week (February 6 - February 10, 2017) as dollar was weaker before Trump-Abe meeting. The U.S. currency hit 10-day high on Friday. While the market has to wait till start of trading hours on Monday next week, it is time we take a look back at how the week has been for the lightmetal traded on LME.
LME aluminium price stood at US$1,812 per tonne on Monday, February 6, from where it gradually took off to close at US$1,839 per tonne after Thursday's night trading. The weekly rise in price was registered at 1.49 per cent rate. With dollar regaining strength towards end of the week, it is almost likely that the metal will move at a tight trading range.
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LME official cash buyer price of aluminium rose from US$1,811 per tonne on Monday, February 6, to US$1,820.5 per tonne on Friday. The LME official stock of aluminium came down from 2256000 tonnes on Monday to 2254650 tonnes on Friday.
LME Aluminium premiums also remained fairly unchanged over the week: LME Aluminium US Premium holds steady at US$205, LME Aluminium West-Europe Premium is at US$80, LME Aluminium East-Asia Premium declined from US$95 to US$90, and LME Aluminium South-East Asia Premium remains unchanged at US$15.
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In China market, benchmark price of aluminium on Shanghai Metal Exchange (SME) increased from US$1,947 per tonne on Monday to US$1,963 per tonne on Friday. The lightmetal contracts traded on Shanghai Futures Exchange, primarily SHFE 1703 aluminum, rose higher through the week although within a 'defined' range.
Shanghai Metals Market (SMM) in its forecast says SHFE 1703 aluminum will remain range-bound in the near term as well moving at a range of RMB 13,800-13,950 per tonne.
In addition to a strengthening dollar, crude oil output cut is also going to support aluminium prices across the bourses in the coming week. Traders' eyes will now be on dollar movement before they start trading aluminium in LME and Shanghai markets.
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