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27 FEBRUARY 2017 AL CIRCLE

LME aluminium rebounds on Chinese supply cuts but likely to face resistance at US$1,889

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium prices hovered at lows last week weighed on by a strong dollar. On Friday, the lightmetal rebounded on renewed fears over the Chinese supply cuts but ended low at US$1,877 per tonne, down 29.2 per cent from the previous day's closing at US$1,882 per tonne. Reuters technical analysis states LME aluminium may retrace to a support at US$1,872 per tonne as it faces resistance at US$1,889 per tonne. Shanghai Metals Market (SMM) in its forecast says the contract will move at US$1,875-1,895 per tonne range on Monday, February 27.

As on February 24, LME official cash buyer price of aluminium stands at US$1,876 per tonne, cash seller & settlement price is US$1,877 per tonne, 3M buyer price is US$1,880 per tonne, 3M seller price is US$1,881 per tonne, Dec1 buyer price is US$1,925 per tonne, and Dec1 seller price is US$1,930 per tonne. The current LME official Opening Stock of aluminium is estimated at 2181675 tonnes, total Live Warrants is 1324300 tonnes, and Cancelled Warrant is 857375 tonnes.

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In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) has risen marginally. The price is up by 0.61 per cent from its previous day's price of US$1,954 per tonne on Friday to stand at US$1,966 per tonne on Monday, February 27.

Aluminium contracts traded on Shanghai Futures Exchange (SHFE) advanced on Friday's night trading, but met significant resistance at the upper hand. SHFE 1704 aluminum started at RMB 13,555 per tonne on Friday and closed at RMB 13,715 per tonne. SMM says there is still space for SHFE 1704 aluminum to drop further but the scope is limited. The contract will find support at the RMB 13,500 per tonne in the near term will move between RMB 13,700-13,950 per tonne on Monday.

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Spot aluminium in China's domestic market is expected to trade at discounts of RMB 240-200 per tonne on Monday.

The US will annonce a series of economic data today, and the results are expected to be positive.

Tagged with:

Aluminium Price China LME

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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