LME Aluminium gets support from oil output cut agreement, SHFE Aluminium drops further

<p>LME Aluminium price fall finally took a hiatus with the OPEC members reaching consensus on oil output cut on Thursday. The contract which traded at around US$1,722/mt on Tuesday, closed at US$1,722.50/mt on Wednesday. On Thursday, December 1, LME aluminium price will move in the range of US$1,725-1,745/mt, foresees Shanghai Metals Market. <br /><br />LME official opening stocks of aluminium, as on November 30, stands at 2155050mt, total Live Warrants is estimated at 1388225mt and Cancelled Warrant is recorded at 760925mt. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20Aluminium%20.jpg" alt="News" width="517" height="226" /><br />In China, aluminium traded on Shanghai Metal Exchange opened with losses. The contract after closing at US$2,029/mt on Wednesday, opened at US$2,022/mt on Thursday, December 1. &nbsp;<br /><br />On Wednesday, aluminium traded on Shanghai Futures Exchange- SHFE 1702 aluminium started at RMB 13,335/mt and then increased slightly with entering of longs, up to as high as RMB 13,390/mt. Later, SHFE 1702 aluminium dropped with positions closing by longs and plumped below the 40-day moving average. SHFE 1702 aluminium will rise slightly to RMB 13,250-13,500/mt on Thursday, SMM foresees. <br /><br />{googleAdsense} <br /><br />Base metals including aluminium are expected to get a support from OPEC&rsquo;s oil agreement on Thursday. &ldquo;After the oil cut agreement, today will see PMI results from many countries, and Shanghai market will continue digesting OPEC&rsquo;s cut agreement,&rdquo; says SMM. <br /><br />Spot premiums in China's domestic market should trade at premiums of RMB 150-190/mt on Thursday.</p>