
LME aluminium took a cue from the recent China aluminium capacity cut announcement s and surged to US$1,920 per tonne on Monday, August 7. The rise of nearly 1.6 per cent from the contract’s earlier close of US$1,890 per tonne on Friday, July 4, can be partially attributed to the somewhat weak US dollar index.
Reuters’ technical analysis suggests that LME aluminium may test a resistance at US$1,988 per tonne, and stands a good chance of breaking above this level rising into a range of US$1,996-US$2,010 per tonne in the short term.
{alcircleadd}According to Shanghai Metals Market forecast, LME aluminium which has entered a new trading range now is likely to hover at highs of US$,960-1,980 per tonne on Tuesday, August 8.

As on August 7, LME official cash buyer aluminium price (Bid Price) stands at US$1,919 per tonne, cash seller & settlement aluminium price (Offer price) is US$1,920 per tonne, 3M Bid Price is US$1,939 per tonne, 3M Offer Price is US$1,911 per tonne, Dec1 Bid Price is US$1,990 per tonne, and Dec1 Offer Price is US$1,995 per tonne. LME aluminium Opening Stock stands at 1321750 tonnes, total Live Warrants is 1041300 tonnes, and Cancelled Warrant is 280450 tonnes.
LME aluminium premiums remain unchanged across major regions globally. As on August 4, LME aluminium premium for the U.S. stands at US$165, LME Aluminium West-Europe Premium stands at US$80, LME Aluminium East Asia Premium remains unchanged at US$15, and LME Aluminium South-East Asia Premium is US$15 (per tonne).
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has edged higher to US$2,261 per tonne on Tuesday, August 8, from US$2,193 on Friday, August 7.
At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1710 opened at RMB 14,840 per tonne on Monday, and then rose sharply towards the end. SMM predicts that SHFE 1710 aluminium will range higher at RMB 15,350-15,530 per tonne on Tuesday, August 8.
Spot aluminium in east China market is expected to trade at discounts of RMB 180-140 per tonne over SHFE 1708 aluminium on Tuesday.
The market focus will be on China’s July trade data, US JOLTs in June and content of meeting held by some OPEC and non-OPEC countries in United Arab Emirates on Tuesday, SMM said.
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