
LME aluminium after testing an upper-end support at US$2,046 per tonne surged to cross the US$2,050 per tonne mark and closed at US$2,056 per tonne on Tuesday, August 15. The light metal rose by 1.28 per cent from its earlier close at US$2,030 per tonne on August 14. According to Shanghai Metals Market forecast, LME aluminium will move widely in the near term. The contract will test support at the five-day moving average and range at US$2,035-2,055 per tonne on Wednesday, August 15.
Reuters’ technical analysis suggests that aluminium prices at LME may rise up to levels last seen in September 2014 if they manage to break above US$2,078.75 per tonne.
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As on August 15, LME official cash buyer aluminium price (Bid Price) stands at US$2,055 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,056 per tonne, 3M Bid Price is US$2,050 per tonne, 3M Offer Price is US$2,051 per tonne, Dec1 Bid Price is US$2,090 per tonne, and Dec1 Offer Price is US$2,095 per tonne. LME aluminium Opening Stock stands at 1288925 tonnes, total Live Warrants is 1030450 tonnes, and Cancelled Warrant is 258475 tonnes.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has risen from its recent lows to US$2,359 on Wednesday, August 15.
At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1710 opened at RMB 15,720 per tonne on Tuesday, and then fell to RMB 15,590 per tonne. Later, the contract followed the surge in other base metals and ended at RMB 15,890 per tonne. SMM predicts that SHFE 1710 aluminium will move between 5-day and 10-day moving averages and trade in the range of RMB 15,750-16,050 per tonne on Wednesday, August 15.
Spot aluminium in east China market is expected to trade at discounts of RMB 230-190 per tonne over SHFE 1709 aluminium on Wednesday.
The market focus will be on the US crude oil stocks, UK ILO jobless rate in Q2, Euro zone’s seasonally adjusted Q2 GDP, and US housing starts in July on Wednesday, SMM said.
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