Aluminium traded on London Metal Exchange (LME) will fluctuate between US$ 1,660-1,685/mt on Wednesday and SHFE 1612 aluminium should range within RMB 13,500-13,800/mt, said Shanghai Metals Exchange in an early morning forecast.

In China, aluminium in spot market is expected to trade at premiums of RMB 400~440/mt over SHFE 1611 aluminium on Wednesday.



Prices of base metals on the SHFE are expected to diverge today after yesterday's cross-board rise, SMM predicts. “Speculative funds withdraw from the commodity market in overnight trading, and this will negatively affect base metal market, and with price divergence expected,” says analyst.

On Tuesday, LME aluminium closed at US$ 1651/mt and Shanghai aluminium jumped 4 per cent to its highest in more than two years on Wednesday, tracking a surge in prices for coal. SHFE aluminium was trading at 13,580 yuan ($2,005.14) a tonne by 0105 GMT yesterday, having earlier surged to 13,995 yuan, its most expensive since September 2014. SME aluminium closed at US$2,068.00/mt on Tuesday. 

On Wednesday, SME opening aluminium price stood at US$2,146/mt. As per the latest update, LME official opening stock stands at 2165700 tonnes.

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Key macroeconomic indicators

US crude oil stocks and September new home sales will be under the market’s radar on Wednesday.

US housing starts, existing home sales and new home sales all fell in August. Housing starts fell to the lowest in one year and a half in September, which will tighten house inventories and allow home prices to extend gains, thus dampening new home sales.

US crude oil stocks fell sharply last week, mainly because the US cut imports. The API’s US crude oil stocks, released this morning, rose significantly, sending crude oil prices down. But, the downside room for crude oil prices was limited due to falling crude oil stocks in Cushing.