
LME aluminium price declined in tandem with other base metals during night trading on Thursday, April 6. The contract dropped 0.30 per cent from its earlier close of US$1,962 per tonne on Wednesday to stand at US$1,956 per tonne on Thursday. The decline in the light metal price reflects a limited diversion from the US dollar index which was pushed down by the risk-averse market sentiment after the US launched cruise-missile attack on Syria. However, experts believe that the attack is going to have a feeble effect on the base metals. As per Shanghai Metals Market projections, LME aluminium will keep fluctuating between US$1,940-1,975 per tonne on Friday, April 7.
As on April 6, LME official cash buyer price of aluminium stands at US$1,955.50 per tonne, cash seller & settlement price is US$1,956 per tonne, 3M buyer price is US$1,968 per tonne, 3M seller price is US$1,968.50 per tonne, Dec1 buyer price is US$2,003 per tonne, and Dec1 seller price is US$2,008 per tonne. The current LME official Opening Stock of aluminium is estimated at 1837050 tonnes, total Live Warrants is 988100 tonnes, and Cancelled Warrant is 848950 tonnes.
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LME aluminium premiums remain unchanged across major global markets. LME Aluminium US Premium stands at US$215, LME Aluminium West-Europe Premium stands at US$95, LME Aluminium East-Asia Premium is US$105 and LME Aluminium South-East Asia Premium is US$15 (per tonne) as on April 5.
The benchmark aluminium price of Shanghai Metal Exchange (SME) also softened at par with the LME aluminium. As on April 7, it stands at US$2,004 per tonne, down 0.14 per cent from its previous benchmark price of US$2,007 per tonne on April 6.
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Aluminium traded on Shanghai Futures Exchange SHFE 1705 aluminium started at RMB 14,100 per tonne on Thursday and then rallied to close at RMB 14,095 per tonne. The contract is expected to rise further in the near term. It should trade at RMB 13,850-14,100 per tonne on Friday, foresees SMM.
Spot aluminium in China's domestic market is projected to trade at discounts of RMB 200-160 per tonne on Friday.
SMM says, traders should watch out for March nonfarm payrolls of the US, labor force participation rate and salary growth on Friday as the key macroeconomic factors.
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