LME aluminium inches up; gains likely to be limited

LME aluminium edged higher and retraced US$2,100 per tonne on Monday, November 13 as dollar index remained flat. The light metal contract has been following a downtrend since November 3 when it touched US$2,165 per tonne. LME aluminium has declined 3 per cent since then. It is projected that LME aluminium will rise within a limited range before testing resistance at US$2,125 per tonne in the near term.

As on November 13, LME official cash buyer aluminium price (Bid Price) stands at US$2,099 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,100 per tonne, 3M Bid Price is US$2,113 per tonne, 3M Offer Price is US$2,114 per tonne, Dec1 Bid Price is US$2,158 per tonne, and Dec1 Offer Price is US$2,163 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1165325 tonnes, total Live Warrants is 912525 tonnes, and Cancelled Warrant is 252800 tonnes.                 

As on November 13, spot price against 3-month futures price traded at discount of US$18.9 per tonne.              

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has dropped slightly from US$2,313 per tonne on November 13, to US$2,307 per tonne on November 14.  

In China domestic market, aluminium price is keeping volatile due to weak consumption and growing inventory pressure. The latest price movement on Shanghai Futures Exchange is as follows:

As per latest data released by State Statistics Bureau, China’s primary aluminium output dropped 7.5 per cent to 2.55 million tonnes on yearly basis in October. Output from January to October stood at 27.23 million tonnes, up 3.7 per cent year-on-year.