LME aluminium expected to gain strength on Friday; SHFE aluminium to look for price directions

The U.S. dollar index failed to gain any significant ground after its continuous fall. The LME aluminium contract dipped by 0.27 per cent to close at US$1,813 per tonne after Thursday's night trading. As seen by Shanghai Metals Market, LME aluminium price will test the 10-day moving average on Friday and will move at USD 1,820-1,840/mt.,February 03, Friday.

As on February 02, LME official cash buyer price of aluminium stands at US$ 1812.5 per tonne, cash seller & settlement price is US$ 1813 per tonne, 3M buyer price is US$ 1821 per tonne, 3M seller price is US$ 1821.5, Dec1 buyer price is US$1,862 per tonne, and Dec1 seller price is US$1,867 per tonne. The current LME official Opening Stock of aluminium is estimated at 2269900 tonnes, total Live Warrants is 1644975 tonnes, and Cancelled Warrant is 618050 tonnes.

As on February 01, LME Aluminium US Premium stands at US$200, LME Aluminium West-Europe Premium is US$80, LME Aluminium East-Asia Premium is US$95 and LME Aluminium South-East Asia Premium is US$15.

Base metal prices including aluminium on the SHFE are set to achieve price direction after the week-long Chinese New Year holiday. Base metals on the LME rose at first and then fell back during the 2017 Chinese New Year holiday, SMM says.

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According to SMM prediction, in the China market, aluminium traded on Shanghai Futures Exchange is predicted to hover at a high range of RMB 13,700-13,900/mt on Friday, the first trading day after 2017 Chinese New Year holiday.

Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 320-280/mt on Friday.

The Indian rupee continued trending higher into the 8th straight session on Friday as it firmed up by another 4 paise in early trade to 67.33 against the dollar. Mumbai's Multi Commodity Exchange (MCX) aluminium is expected to be trading at an average of INR 122.30 on Friday. The contract opened at INR 122.25.