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17 JANUARY 2017 AL CIRCLE

LME aluminium price rise continues but likely to become range-bound, says SMM

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium is continuing its rise. The contract rose for the fifth straight day to close at US$1,812 per tonne after Monday's night trading, up 1.2 per cent from the previous day. Shanghai Metals Market predicts LME aluminium will test the 5-day moving average and move in US$1,775-1,800 per tonne range on Tuesday, January 17. The contract, SMM says, has surrendered its previous gains as traders seem to be getting worried about the effect of Brexit on the UK market.

As on January 16, LME official cash buyer price of aluminium stands at US$1,811.5 per tonne, cash seller & settlement price is US$1,812 per tonne, 3M buyer price is US$1,811.5 per tonne, 3M seller price is US$1,1812 pe tonne, Dec1 buyer price is US$1,848 per tonne, and Dec1 seller price is US$1,853 per tonne. The current LME official Opening Stock of aluminium is estimated at 2244175 tonnes, total Live Warrants is 1612050 tonnes, and Cancelled Warrant is 638900 tonnes.

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In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,917 per tonne on Tuesday, up 0.15 per cent from US$1,914 per tonne on Monday.

Aluminium traded on Shanghai Futures Exchange- SHFE 1703 aluminium rallied and finally closed at RMB 13,390 per tonne while SHFE 1701 aluminium closed at RMB 13,215 per tonnes after Monday's night trading. SMM predicts, SHFE 1703 aluminium will hover at RMB 13,280-13,450 per tonne on Tuesday.

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Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 140-100 per tonne on Tuesday.

According to analysts, oil market will see some tightening this year as agreement has been reached among OPEC and non-OPEC producers to cut 1.8 million bbl/day of global output in 1H17. This will likely support aluminium prices in 2017.

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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