
The upward momentum in LME aluminium prices is likely to slow down this week. The bullish sentiment that prevailed last week with investors flooding in the market is settling down. LME aluminium which had closed at US$2,104 per tonne last Friday, August 18, came down to US$2,084 per tonne on Monday, August 21. Shanghai Metals Market predicts that LME aluminium will stage technical corrections and hover at moderate highs this week.
Reuters’ technical analysis suggests that LME aluminium may drop into the range of US$2,046-2,055 per tonne after facing correction. There is a resistance at US$2,089; a break above this mark could lead the light metal to a gain around US$2,103 per tonne.
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As on August 21, LME official cash buyer aluminium price (Bid Price) stands at US$2,084 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,084.50 per tonne, 3M Bid Price is US$2,080 per tonne, 3M Offer Price is US$2,082 per tonne, Dec1 Bid Price is US$2,120 per tonne, and Dec1 Offer Price is US$2,125 per tonne. LME aluminium Opening Stock stands at 1298225 tonnes, total Live Warrants is 1086475 tonnes, and Cancelled Warrant is 211750 tonnes.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped from US$2,420 per tonne on Monday, August 21 to US$2,416 per tonne on Tuesday, August 22.
At Shanghai Futures Exchange (SHFE), SHFE 1709 aluminium performed reasonably well and ended at RMB 16,380 per tonne on Monday, August 21. Traders were found to be active in south China market, while downstream players showed low buying interest. SMM predicts that trading should improve this week as downstream order placement has picked up from last week.
As on August 22, 3-month SHFE aluminium price stands at RMB 16,100-16,700 per tonne, SMM data shows.
The market focus will be Eurozone’s ZEW economic sentiment index in August and US’s FHFA home price index in June, on Tuesday, August 22, SMM said.
India MCX Aluminium Price Trend
In India futures trade, aluminium prices extended the rally for the second consecutive week. MCX aluminium price is currently trading at INR 132 per kg. Key support is in the range of INR 130-INR129 per kg, analysis suggests.
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