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14 AUGUST 2017 AL CIRCLE

LME aluminium keeps climbing higher and how! Consolidation is in forecast

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium is trending high. With the Chinese supply-side scenario looking a bit precarious and the US dollar turning broadly lower against major currencies on Friday, August 11, the light metal is expected to climb higher. LME aluminium rose from its earlier close of US$2,024 per tonne on August 10, to settle at US$2,040 per tonne on Friday, August 11.

According to Shanghai Metals Market forecast, LME aluminium will move at highs of US$2,035-2,050 per tonne Monday, August 14.

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Reuters’ technical analysis suggests that aluminium prices at the LME may consolidate in a narrow range of US$2,021-2,046 per tonne over the near term before reversing the trend once again.

News

As on August 11, LME official cash buyer aluminium price (Bid Price) stands at US$2,039.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,040.50 per tonne, 3M Bid Price is US$2,037 per tonne, 3M Offer Price is US$2,037.50 per tonne, Dec1 Bid Price is US$2,075 per tonne, and Dec1 Offer Price is US$2,080 per tonne. LME aluminium Opening Stock stands at 1283825 tonnes, total Live Warrants is 1031175 tonnes, and Cancelled Warrant is 252650 tonnes.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped slightly from US$2,366 per tonne on Friday, August 11, to US$2,334 on Monday, August 14.  

News

At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1710 opened at RMB 16,130 per tonne on Friday, and then moved widely before hitting a low of RMB 15,930 per tonne and an intraday high of RMB 16,250 per tonne. SMM predicts that SHFE 1710 aluminium will face corrections this week and trade in the range of RMB 16,000-16,150 per tonne on Monday, August 14.

Spot aluminium in east China market is expected to trade at discounts of RMB 170-130 per tonne over SHFE 1708 aluminium on Thursday.

The market focus will be on the Chinese economic data scheduled for release today, January-July urban fixed asset investment, January-July industrial value-added, and July retail sales data on Monday, SMM said.

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Aluminium Price LME Forecast

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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