
The month of November was marked by lower LME aluminium prices and on the whole aluminum prices decreased by 5.6% during this month. Aluminum prices rallied since August 2017 and broke the resistance levels. However, despite the price declines in November, the early days of December is showing some improvement in price.
After edging higher on Monday, November 4 closing at US$2,052.50 per tonne, the light metal contract closed at US$2,052 per tonne yesterday November 5. Analysts revised up their aluminium price forecast in Citi Annual Commodities Market Outlook 2018. Aluminium prices are expected to stay high due to skyrocketing oil prices as well as other raw materials like alumina. Analysts expect LME aluminium prices to remain well above US$2,000 per tonne range in the medium term.
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As on December 5, LME official cash buyer aluminium price (Bid Price) stands at US$2,051.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,052 per tonne, 3M Bid Price is US$2,067 per tonne, 3M Offer Price is US$2,067.5 per tonne, Dec1 Bid Price is US$2,115 per tonne, and Dec1 Offer Price is US$2,120 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1101950 tonnes, total Live Warrants is 864100 tonnes, and Cancelled Warrant is 237850 tonnes.
The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped from US$2,179.00 per tonne on Tuesday, December 5, to US$2,124.00 per tonne on Wednesday, December 6.
According to analysts trading volumes for both LME and SHFE prices still signal upward momentum, so buying organizations need to consider their longer-term buying strategies. Shanghai Metals Market forecast says today SHFE Aluminium may temporarily stop dropping at RMB 14,350-14,550 per ton, with spot premium from discount RMB 180-140 per ton.
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