
The uptrend in LME aluminium met with a drop last week as the metal closed at US$1,920 per tonne on Friday, July 7, down 0.28 per cent from its previous close of US$1,925.50 per tonne on Thursday, July 6. US dollar index though posted weekly gains, remains under pressure. So, Shanghai Metals Market thinks that LME aluminium will draw support from it and hover at highs of US$1,920-1,940 per tonne on Monday, July 10.

As on July 7, LME official cash buyer aluminium price stands at US$1,919 per tonne, cash seller & settlement aluminium price is US$1,920 per tonne, 3M buyer price is US$1,931 per tonne, 3M seller price is US$1,932 per tonne, Dec1 buyer price is US$1,965 per tonne, and Dec1 seller price is US$1,970 per tonne. The current LME official Opening Stock of aluminium is estimated at 1382125 tonnes, total Live Warrant is 1063000 tonnes, and Cancelled Warrant is 319125 tonnes.
LME aluminium premiums remain unchanged across major markets worldwide. As on July 6, LME aluminium premium for the US stands at US$180, LME Aluminium West-Europe Premium stands at US$80, LME Aluminium East-Asia Premium is US$105, and LME Aluminium South-East Asia Premium is US$15 (per tonne).
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The benchmark aluminium price at Shanghai Metal Exchange (SME) has edged higher. It stands at US$2,051 per tonne on Monday, July 10, up from Friday’s benchmark price of US$2,044 per tonne.
At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1709 aluminium opened at RMB 14,230 per tonne on Friday, July 7, and then fell to RMB 14,150 per tonne. Later, the contract rallied to settle at RMB 14,225 per tonne. SMM predicts that SHFE 1709 aluminium will face downward pressure and fluctuate within RMB 14,100-14,250 per tonne on Monday, July 10.
Spot aluminium in east China market is expected to trade at discounts of RMB 120-80 per tonne over SHFE 1707 aluminium contract on Monday.
The market focus will be on China’s CPI and PPI in June, M2 money supply, eurozone’s Sentix index of consumer sentiment in July and US’s change in labour market conditions index in June on Monday, SMM stated.
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