LME aluminium inches higher but likely to continue testing support

LME aluminium inches higher again and is back to where it was a couple days before. The light metal contract after dropping to US$2,082.50 per tonne on Wednesday, August 23, rose back to US$2,105 per tonne on Thursday, August 24. However, this rise is unlikely to extend in the short term. According to Shanghai Metals Market forecast, LME aluminium will continue to test support at the five-day moving average and range at US$2,085-2,105 per tonne on Friday, August 25.

Reuters’ technical analysis suggests that LME aluminium may fall into the range of US$2,068-2,081 per tonne. Any further gain would be limited to US$2,125 per tonne.   

As on August 24, LME official cash buyer aluminium price (Bid Price) stands at US$2,104 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,105 per tonne, 3M Bid Price is US$2,101 per tonne, 3M Offer Price is US$2,101.50 per tonne, Dec1 Bid Price is US$2,140 per tonne, and Dec1 Offer Price is US$2,145 per tonne. LME aluminium Opening Stock stands at 1314475 tonnes, total Live Warrants is 1119875 tonnes, and Cancelled Warrant is 194600 tonnes.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped slightly from US$2,441 per tonne on Thursday, August 24 to US$2,435 per tonne on Friday, August 25.

At Shanghai Futures Exchange (SHFE), the most active aluminium contract SHFE 1710 aluminium opened up at RMB 16,705 per tonne on Thursday, August 24, and then slid to close at RMB 16,465 per tonne. SMM predicts that another active contract on the bourse, SHFE 1711 aluminium will trade in the range of RMB 16,500-16,750 per tonne on Friday, August 25.

In China aluminium spot market, discounts on SHFE 1709 aluminium are expected to range between RMB 220-180 per tonne on Friday.

The market focus will be on the US’s durable goods orders in July and speeches of the Federal Reserve Chairwoman Yellen and European Central Bank’s Chair on Friday, August 25, SMM said. 

India MCX aluminium price trend

India aluminium prices eased by 0.49 per cent to INR 133.30 per kg in futures trade on Thursday amid subdued demand from end user industries in the spot market.

At the Multi Commodity Exchange, aluminium for August delivery traded at INR 133.30 per kg and aluminium for September delivery traded at INR 134.10 per kg.