LME aluminium remains unchanged; likely to fall below US$2,103/t

LME aluminium seems to be lacking the rising impetus after retracing to previous highs. The light metal contract closed at US$2,083 per tonne on Wednesday, September 13, unchanged from the previous day’s close after trading within a narrow range throughout the day. According to Reuters’ technical analysis, LME aluminium is biased to drop below a neutral zone of US$2,103-2,135 per tonne on Thursday, September 14.

As on September 13, LME official cash buyer aluminium price (Bid Price) stands at US$2,082 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,083 per tonne, 3M Bid Price is US$2,116.50 per tonne, 3M Offer Price is US$2,117.50 per tonne, Dec3 Bid Price is US$2,248 per tonne, and Dec3 Offer Price is US$2,253 per tonne. LME aluminium Opening Stock stands at 1317025 tonnes, total Live Warrants is 1152250 tonnes, and Cancelled Warrant is 164775 tonnes. Total LME aluminium inventory stands at 1,317,025 tonnes (-1,925 tonnes).

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped from US$2,501 per tonne on Wednesday, September 13, to US$2,482 per tonne on Thursday, September 14.

During Wednesday’s night trading, base metals at Shanghai Futures Exchange ended lower across the board as dollar rose high and inventory built up.  SMM predicts that the price declines may extend over the next few days. The most active aluminium contract on the bourse SHFE 1711 aluminium is projected to diverge from other base metals and range at RMB 16,450-16,650 per tonne on Thursday, September 14.  

In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 120-80 per tonne on Thursday.