
Elections in Italy held on November 4 saw majority Italians voting against the move to amend post-war constitution and Prime Minister Matteo Renzi stepping down in populist revolt which sent the US dollar to new highs. The strong dollar, in turn, weighed down LME aluminium prices. The contract closed at US$1,715/mt after Friday’s night trading last week. Shanghai Metals Market expects, LME Aluminium will meet resistance at the 5-day moving average on Monday and will move at US$1,705-1,725/mt.
As on December 2, the 3M LME official Buyer price of aluminium was recorded at US$1,712/mt, 3M Seller Price was at US$1,713/mt, DEC1 Buyer Price was at US$1,725/mt, and DEC1 Seller price was at US$1,730/mt. LME official opening stocks of aluminium is estimated at 2144850mt, Total Live Warrants is 1386225mt, and Cancelled Warrant is 753050mt. .jpg)
A strong dollar weighed down the Chinese Yuan which boosted aluminium prices in China major markets on Friday. Aluminium traded on Shanghai Metal Exchange, closed at US$2,035/mt on November 2. However, volatility seems to be already setting in across commodities market in China's domestic market. SME aluminium opened at US$2,010/mt on November 5, Moday.
Aluminium on Shanghai Futures Exchange- SHFE 1702 is expected to rise and will range between RMB 17,200-17,500/mt on Monday with support at RMB 13,200/mt, predicts SMM. Spot aluminum in China’s domestic market should trade at premiums of RMB 20-60/mt on Monday, adds SMM.
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According to SMM, China’s economic data will be release this week, including November’s inflation and foreign trade. Inflation will increase at the end of year, and rising commodity prices will pass its impact from PPI to CPI continuously, creating a picture of improving economy in China. Overall, base metal prices on the SHFE are expected to trade in a wide range this week.
“This week, Shanghai base metal prices are expected to trade in a wide range, and overall sentiment remains positive,” SMM says.
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