LME aluminium opens higher on the first day of post-holiday trading

LME aluminium opened higher on the first day of trading after Christmas Holidays. The global macroeconomics remaining positive, the light metal contract rose by 2.9 per cent from the previous week’s close at US$2,137 per cent to US$2,199 per cent on Wednesday, December 27. Technical analysis suggests that the rise in LME aluminium will continue and the contract will break above US$2,200 per tonne mark today.

Shanghai Metals Market forecasts that LME aluminium will trade at US$2,230-2,260 per tonne range on Thursday, December 28.

As on December 27, LME official cash buyer aluminium price (Bid Price) stands at US$2,199 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,199.50 per tonne, 3M Bid Price is US$2,207 per tonne, 3M Offer Price is US$2,209 per tonne, Dec1 Bid Price is US$2,243 per tonne, and Dec1 Offer Price is US$2,248 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1104425 tonnes, total Live Warrants is 849200 tonnes, and Cancelled Warrant is 255225 tonnes.

SME and SHFE aluminium price trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has jumped from US$2,174 per tonne on Wednesday, December 27, to US$2,201 per tonne on Thursday, December 28.

The price movement of aluminium contracts traded at Shanghai Futures Exchange as updated by SMM on December 27 is as follows:

SHFE aluminium is expected to be driven by LME aluminium today. The most active contract would test resistance at the RMB 15,000 per tonne level, and trade at RMB 14,700-15,000 per tonne on Thursday, December 28, SMM said.

The spot discount on SHFE aluminium is expected to “go deeper” at RMB 370-330 per tonne today, SMM added.