LME aluminium prices strengthen on declining inventories

LME aluminium prices are holding at highs. With the inventories falling by 10,800 tonnes to 1,218,950 tonnes, the light metal contract edged further up to close at US$2,144 per tonne on Monday, October 16 from US$2,140 per tonne last Friday, October 13.

Technical analysis and recent price movements suggest that LME aluminium may trade within a wide range of US$2,135-US$2,155 per tonne in the short term.

As on October 16, LME official cash buyer aluminium price (Bid Price) stands at US$2,143.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,144 per tonne, 3M Bid Price is US$2,159 per tonne, 3M Offer Price is US$2,159.50 per tonne, Dec1 Bid Price is US$2,205 per tonne, and Dec1 Offer Price is US$2,210 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1218950 tonnes, total Live Warrants is 969700 tonnes, and Cancelled Warrant is 249250 tonnes.                               

Aluminium inventory in SHFE warehouse

According to Shanghai Metals Market statistics, the inventories of electrolytic aluminium in Shanghai Futures Exchange warehouse (warrant included), as on October 16: Shanghai 333,000 tonnes, Wuxi 692,000 tonnes, Hangzhou 87,000 tonnes, Nanhai 425,000 tonnes, Gongyi 138,000 tonnes, Tianjin 58,000 tonnes, Chongqing 34,000 tonnes.

Total aluminium inventories in seven places across China reached 1.767 million tonnes, up by 35,000 tonnes compared with last Thursday, October 12.

MCX aluminium price trend

The aluminium futures contract on India’s Multi Commodity Exchange (MCX) has been range-bound at INR137-141 per kg for the third consecutive week. Within this range, the contract tested the upper end of the range by making a high of INR141.4 on October 9. The contract nosedived sharply after that to test the lower end support and touched a low of INR136.8 on Friday, October 13. MCX aluminium price has bounced back since then.