LME aluminium gains after US dollar index hits one-month low

LME aluminium gained slightly after the US dollar index hit one-month low following the minutes from the Federal Reserve’s last FOMC meeting. The light metal contract inched higher from US$2,085 per tonne on Wednesday, November 23 to US$2,090 per tonne on Thursday, November 24.

JP Morgan in its recent report on global commodity market said that aluminium prices will rise, and so long-term hold is recommended. For the short term, any rise in LME aluminium will be limited within a narrow range.

As on November 23, LME official cash buyer aluminium price (Bid Price) stands at US$2,088 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,090 per tonne, 3M Bid Price is US$2,103 per tonne, 3M Offer Price is US$2,103.50 per tonne, Dec1 Bid Price is US$2,150 per tonne, and Dec1 Offer Price is US$2,155 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1128875 tonnes, total Live Warrants is 893925 tonnes, and Cancelled Warrant is 234950 tonnes.   

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has slipped from US$2,245 per tonne on November 23, to US$2,243 per tonne on November 24.  

In China domestic market, the main contract on Shanghai Futures Exchange broke upward the 5-day moving average, testing support at RMB 15,000 per tonne. SHFE aluminium price movement as on November 23 is as follows:

Shanghai Metals Market opines that “the overall situation is easy to drop but hard to rise.” SHFE aluminium is expected to move between RMB 14,900-15,100 per tonne on November 24, with premium of RMB 160-120 per tonne. Downstream purchase as per need is recommended at the moment.