LME aluminium hit 10-day high on Jan 12; SHFE aluminium faces resistance

After a brief marginal, mid-week drop, LME aluminium rose 1.1 per cent to reach a 10-day peak at US$2,239 per tonne on Friday, January 12. The consistent rise in the light metal prices can be partly viewed as a result of the erosion in global aluminium supply caused due to output cuts in China. LME aluminium closed at US$2,215 per tonne on Friday, up from US$2,179 per tonne on Thursday, January 11.

Shanghai Metals Market analysis suggests that LME aluminium will rise higher at US$2,210-2,240 per tonne on Monday, January 15, due to the closure of Alcoa’s plant and anti-dumping factors.

As on January 12, LME official cash buyer aluminium price (Bid Price) stands at US$2,214 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,215 per tonne, 3M Bid Price is US$2,222.50 per tonne, 3M Offer Price is US$2,223 per tonne, Dec1 Bid Price is US$2,292 per tonne, and Dec1 Offer Price is US$2,297 per tonne. LME aluminium opening stock stands at 1086875 tonnes, total Live Warrants is 836375 tonnes and Cancelled Warrants 250500 tonnes.

The Asian reference price for LME aluminium (3-months ABR) is US$2,198.82 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has jumped from US$2,288 per tonne on January 12 to US$2,323 per tonne on January 15.

On Shanghai Futures Exchange, SHFE aluminium price movement on January 12, as updated by Shanghai Metals Market, was as follows:

SHFE aluminium is expected to stay weaker in the short term in the face of resistance and trade between RMB 15,080-15,300 per tonne on Monday. In the spot market, discounts on the most active SHFE aluminium contract will move at 100-60 per tonne today, SMM said.