
The falling LME aluminium found support at US$1,857 per tonne and edged higher reversing its week-long downtrend. The contract closed at US$1,881 per tonne during Wednesday's night trading, rising 1.28 per cent from its previous day's close of US$1,858 per tonne. As Shanghai Metals Market (SMM) finds it LME aluminium will trade at US$1,860-1,886 per tonne on Thursday, March 9, meeting resistance at the 5, 10 and 20-day moving averages.
As on March 8, LME official cash buyer price of aluminium stands at US$1,880.50 per tonne, cash seller & settlement price is US$1,881 per tonne, 3M buyer price is US$1,888.50 per tonne, 3M seller price is US$1,889 per tonne, Dec1 buyer price is US$1,933 per tonne, and Dec1 seller price is US$1,938 per tonne. The current LME official Opening Stock of aluminium is estimated at 2101550 tonnes, total Live Warrants is 1298525 tonnes, and Cancelled Warrant is 803025 tonnes.
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In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) has dropped at US$1,948 per tonne, down 0.71 per cent from its Wednesday's benchmark price of US$1,962 per tonne.
Aluminium traded on Shanghai Futures Exchange (SHFE) stuck to its downtrend. SHFE 1705 aluminum opened at RMB 13,865 per tonne and then fluctuated to fall below at RMB 13,805 per tonne on Wednesday. SMM says the contract will test support at the 40-day moving average and will trade between RMB 13,700-13,900 per tonne on Thursday.
Spot aluminium in China's domestic market is expected to trade at discounts of RMB 190-150 per tonne on Thursday.
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The first-hand monthly production data gathered from China's base metal market by SMM shows, February aluminium production has increased by 21.1 per cent from the corresponding period previous year to stand at 2328 kilo tonnes. The exports of unwrought aluminium and aluminium semis were 260,000 mt in February, with year-to-date exports from January to February at 650,000 mt, down 2.1 per cent year-on-year.
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