LME aluminium fails to break a key resistance; retraces to US$2,080/t

On failing to break a key resistance at US$2,125 per tonne, LME aluminium retraced to US$2,080 per tonne level. The light metal contract closed at US$2,082.50 per tonne on Wednesday, August 23, coming down from its earlier high of US$2,104.50 per tonne a day before. According to Shanghai Metal’s Market forecast, LME aluminium is estimated to range widely within US$2,085-2,120 per tonne on Thursday, August 24.

Reuters’ technical analysis suggests that LME aluminium may again rise in the short term, but any gain would be limited to US$2,125 per tonne.  

As on August 23, LME official cash buyer aluminium price (Bid Price) stands at US$2,082 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,082.50 per tonne, 3M Bid Price is US$2,075 per tonne, 3M Offer Price is US$2,076 per tonne, Dec1 Bid Price is US$2,115 per tonne, and Dec1 Offer Price is US$2,120 per tonne. LME aluminium Opening Stock stands at 1314475 tonnes, total Live Warrants is 1115525 tonnes, and Cancelled Warrant is 198950 tonnes.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has again risen from US$2,392 per tonne on Wednesday, August 23 to US$2,441 per tonne on Wednesday, August 24.

At Shanghai Futures Exchange (SHFE), the most active aluminium contract SHFE 1710 aluminium opened at RMB 16,285 per tonne on Wednesday, August 23, and then slid to RMB 16,090 per tonne as longs made an exit. Later, during the day, SHFE 1710 aluminium rallied before ending at RMB 16,210 per tonne. SMM predicts that SHFE 1710 aluminium will challenge new highs and range between RMB 16,550-16,850 per tonne on Thursday, August 24.

In China aluminium spot market, discounts on SHFE 1709 aluminium are expected to range between RMB 220-180 per tonne on Thursday.

The market focus will be on UK’s 2Q GDP after being revised, US initial jobless claims and existing home sales for July, on Thursday, August 24, SMM said.