LME aluminium poised to regain strength and 'possibly' outshine SHFE aluminium

<p>LME aluminium prices remained fairly unchanged over the weekend. The lightmetal contract closed the week at US$1,932.50 per tonne on Friday, April 21, marginally down by 0.02 per cent from its previous close of US$1,933 per tonne. The US dollar index, which fell on Friday supporting LME aluminium prices ahead of French elections, has edged slightly higher amid speculations in the non-commercial futures market. The uptrend is likley to weigh down upon the base metals, but the effect would be limited.</p> <p>According to Reuters' analysis, LME aluminium may test a support at U$1,931 per tonne, as suggested by its wave pattern and a Fibonacci projection analysis. Shanghai Metals Market foresees, LME aluminium will rebound to US$1,926-1,966 per tonne on Monday, April 24.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LMEAluminiumApril24.png" alt="News" width="517" height="275" /></p> <p>As on April 21, LME official cash buyer price of aluminium stands at US$1,932 per tonne, cash seller &amp; settlement price is US$1,932.50 per tonne, 3M buyer price is US$1,939 per tonne, 3M seller price is US$1,939.50 per tonne, Dec1 buyer price is US$1,973 per tonne, and Dec1 seller price is US$1978 per tonne. The current LME official Opening Stock of aluminium is estimated at 1687875 tonnes, total Live Warrants is 1092925 tonnes, and Cancelled Warrant is 594950 tonnes.</p> <p>LME aluminium premiums, as on April 19, remain same across major regions. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium US Premium is US$215, LME Aluminium West-Europe Premium is US$95, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).</p> <p>{googleAdsense}</p> <p>The benchmark aluminium price at Shanghai Metal Exchange (SME) on April 24 stands at US$2,048 per tonne, down 0.19 per cent from Friday's price of US$2,052 per tonne.</p> <p>Aluminium futures contracts traded on Shanghai Futures Exchange (SHFE) remained somewhat subdued last week. Supply-side reforms resulting from illegal capacity closures in Xinjiang are likely to support aluminium prices in the domestic market but the impact will be limited over the short term.&nbsp; Analysts observe that steadily falling LME aluminium stocks will help LME aluminium outperform Shanghai aluminium prices in the foreseeable future. SHFE 1706 aluminium is likely to move at RMB 14,110-14,450 per tonne on Monday, April 24, SMM says.</p> <p>Spot aluminium in China's domestic market is projected to trade at discounts of RMB 180-140 per tonne over SHFE 1705 aluminium on Monday. &nbsp;&nbsp;&nbsp;</p>