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31 MARCH 2017 AL CIRCLE

LME aluminium headed further up; price consolidation on cards

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium is rising and how. The light metal which touched the highest since mid of May 2015 at US$1,931 per tonne on Wednesday, March 29, climbed further up to close at US$1,955 per tonne (+1.24%) on Thursday, March 30. Shanghai Metals Market (SMM) predicts LME aluminium will trend higher and keep fluctuating at US$1,955-1,980 per tonne on Friday, March 31. According to Reuters' analysis, LME aluminium may consolidate in a range of US$1,957-$1,970 per tonne for one day before falling again, as suggested by its wave pattern and a Fibonacci projection analysis.

As on March 30, LME official cash buyer price of aluminium stands at US$1,954.50 per tonne, cash seller & settlement price is US$1,955 per tonne, 3M buyer price is US$1,959.50 per tonne, 3M seller price is US$1,960 per tonne, Dec1 buyer price is US$1,993 per tonne, and Dec1 seller price is US$1,998 per tonne. The current LME official Opening Stock of aluminium is estimated at 1898450 tonnes, total Live Warrants is 1007125 tonnes, and Cancelled Warrant is 891325 tonnes.

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As on March 29, LME Aluminium US Premium remains unchanged at US$215, LME Aluminium West-Europe Premium stands at US$95, LME Aluminium East-Asia Premium is US$100 and LME Aluminium South-East Asia Premium is US$15 (per tonne).

The benchmark price of aluminium on Shanghai Metal Exchange (SME) moved up from US$1,963 per tonne on Thursday to US$1,966 per tonne (+0.15%) on Friday, March 31.

SHFE 1705 aluminium traded on Shanghai Futures Exchange (SHFE) opened at RMB 13,880 per tonne on Thursday and then lost some ground before closing at RMB 13,820 per tonne. SMM predicts the contract will fluctuate at the 20 and 60-day moving averages in a short term move at RMB 13,700-14,000 per tonne on Friday.

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Spot aluminium in China's domestic market should trade at discounts of RMB 220-180 per tonne on Friday, says SMM.

SHFE announced suspension of trading from March 31st night till April 4 on account of the 2017 Chinese Qingming Festival which falls on April 2-4. Trading will be resumed on April 5. Trading margins for aluminium will be adjusted from 9 per cent to 8 per cent, and daily limits will be adjusted from 7 per cent to 6 per cent, updated SMM.

Tagged with:

Aluminium Price SMM LME

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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