LME aluminium hits record high on Wednesday's night trading; Shanghai aluminium to follow suit

LME aluminium touched record highs since the beginning of 2016 during Wednesday's night trading only to come down a little (-2.7 per cent from the previous closing at US$1,805 per tonne) and close at US$1,800 per tonne. According to Shanghai Metals Market forecast, the contract will move within the range of US$1,810-1,835 per tonne on Thursday, January 19. The faltering oil prices and the looming uncertainty on the U.S. Federal Reserve before Donald Trump assumes his office in another 48 hours are seemingly impacting the base metals market.

As on January 18, LME official cash buyer price of aluminium stands at US$1,800 per tonne, cash seller & settlement price is US$1,800.5 per tonne, 3M buyer price is US$1,798 per tonne, 3M seller price is US$1,798.5 per tonne, Dec1 buyer price is US$1,835 per tonne, and Dec1 seller price is US$1,840 per tonne. The current LME official Opening Stock of aluminium is estimated at 2296775 tonnes, total Live Warrants is 1673200 tonnes, and Cancelled Warrant is 627350 tonnes.


In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,922 per tonne on Thursday, up 0.10 per cent from US$1,920 per tonne on Wednesday.

Aluminium contract SHFE 1703 aluminium started at RMB 13,310 per tonne on Shanghai Futures Exchange and dipped later to RMB 13,305 per tonne on Wednesday. The contract will test RMB 13,500 per tonne on Thursday with strengthening LME aluminium prices and will hover at RMB 13,300-13,550 per tonne range, predicts SMM.

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Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 170-30 per tonne on Thursday.

“The dollar is strengthening with positive data, and a cautious attitude should be taken in trading due to uncertainties from market news,” says SMM.