
LME aluminium declined sharply after the U.S. Labour Day weekend, as U.S. crude prices rose on returning refineries. The light metal contract, which ended last week Friday at US$2,113.50 per tonne, came down to settle at US$2,095.50 per tonne on Monday, September 4. Reuters’ technical analysis suggests that LME aluminium may break an important support at US$2,103 per tonne, and fall further to the US$2,081-2,089 per tonne range on Tuesday, September 5.
According to Shanghai Metals Market forecast, LME aluminium will draw support from the 5-day moving average and move within the range of US$2,105-2,130 per tonne on Tuesday, September 5.
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As on September 4, LME official cash buyer aluminium price (Bid Price) stands at US$2,095 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,095.50 per tonne, 3M Bid Price is US$2,119 per tonne, 3M Offer Price is US$2,120 per tonne, Dec3 Bid Price is US$2,230 per tonne, and Dec3 Offer Price is US$2,235 per tonne. LME aluminium Opening Stock stands at 1324625 tonnes, total Live Warrants is 1149200 tonnes, and Cancelled Warrant is 175425 tonnes.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has come down from US$2,506 per tonne on Monday, September 4, to US$2,475 per tonne on Tuesday, September 5.
At Shanghai Futures Exchange, base metals witnessed mixed trading with the LME market performing slightly better, on Monday, September 4. SMM predicts that the most active aluminium contract SHFE 1711 aluminium will hover around RMB 16,500-16,700 per tonne on Tuesday, September 5.
In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 260-220 per tonne on Tuesday.
The market focus will be on the U.S. dollar index movement, Caixin China August service PMI, Euro zone July retail sales and US July durable goods orders on Tuesday, September 5, SMM said.
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