
Aluminium contracts traded on London Metal Exchange (LME) will continue its decline this week, whereas SHFE aluminium will likely swing widely, predicted analysts at Shanghai Metals Market (SMM).
According to SMM, LME aluminium should be down somewhere in the range of US$1,580-1,650 per tonne. On what would likely support SHFE aluminium, they said, expectations for an uptick in September demand will buoy the metal prices despite surge in aluminium production in China. Traditionally September has been the peak-demand month for aluminium in Chinese major markets. SHFE 1610 aluminium should swing widely between 12,000-12,400 yuan per tonne, SMM expected.
Rising shipment volumes from smelters is also expected to drive growth of aluminium stocks across China markets, but total stocks will remain low and growth of inventory of the white metal will be limited. .jpg)
Meanwhile, premiums in east China spot market are expected to remain high at 100-150 yuan per tonne over SHFE 1609 aluminium.
SHFE 1611 aluminium rose to RMB 12,210/mt on Thursday’s night trading after opening at RMB 12,075/mt. The contract thereafter ended at RMB 12,180/mt.
On Friday, SHFE 1611 aluminium soared to RMB 12,245/mt after opening at RMB 12,180/mt. Prices were down at RMB 12,175/mt later in the day, weighed on by short selling. They finally ended at RMB 12,205/mt. Trading volumes rose up to 107,270 lots, and positions were up 4,094 to 164,336.
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