
LME Aluminium met resistance after rising for three consecutive days and closed at US$1,749.50/mt on Monday, December 12. Shanghai Metals Market predicts, the contract will move in the range of US$1,725-1,745/mt on Tuesday.
The market is now looking ahead to the possible interest rate hike in Fed’s December end policy meeting. Any effect from possible Fed rate hike will be limited to base metals, unless the rate hike unexpectedly shakes global market, analysts believe. This year, base metals price dynamics mainly hinged on China’s demand and capacity restriction this year. The same will continue through 2017 unless any major cutback in Chinese aluminium smelter is announced. 
In China, aluminium traded on Shanghai Metal Exchange slipped marginally by 0.61 per cent to open at US$1,932/mt on Tuesday, December 13.
Aluminium ingot inventory increased 10,000 mt in China. SHFE 1702 aluminium will likely range between RMB 13,250-13,480/mt with resistance at the 20-day moving average on Monday, says SMM.
Spot aluminium in China’s domestic market is expected to trade at discounts of RMB 60-20/mt on Tuesday.
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A series of economic data is to be released today. China’s November investment, consumption and industry production data will be announced today. ZEW Economic Sentiment for Germany in December will also be released. According to SMM, base metal prices on SHFE will keep fluctuating in the current range, or may trade higher, but will not register any sharp fall.
“A series of China’s economic data for November will be released today, and market expects results to be stable, and Shanghai prices will keep fluctuating at current price range,” SMM says.
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