
Seeking support from the rising aluminium contracts traded at Shanghai Futures Exchange (SHFE), aluminium prices at London Metal Exchange rose from its current lows of US$2,072 per tonne to US$2,100.50 per tonne on Monday, September 11. Reuters’ technical analysis suggests that LME aluminium will retrace US$2,103 per tonne on Tuesday; a break below the level may lead to a moderate loss. However, any loss would be limited to US$2,082 per tonne.
According to Shanghai Metals Market forecast, LME aluminium will range at US$2,110-2,135 per tonne on Tuesday, September 12.
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As on September 11, LME official cash buyer aluminium price (Bid Price) stands at US$2,100 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,100.50 per tonne, 3M Bid Price is US$2,128 per tonne, 3M Offer Price is US$2,129 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 1320050 tonnes, total Live Warrants is 1152250 tonnes, and Cancelled Warrant is 167800 tonnes. Total LME aluminium inventory stands at 1,320,050 tonnes (-1,450 tonnes).
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has edged higher from US$2,441 per tonne on Monday, September 11, to US$2,473 per tonne on Tuesday, September 12.
On Monday, base metals at Shanghai Futures Exchange rallied, with SHFE aluminium logging a 2.5 per cent increase over its last day’s close. The most active contract rose to US$2,501 per tonne. SMM predicts that SHFE 1711 aluminium will advance further to US$2,520.70-2,551.25 per tonne range on Tuesday, September 12, since longs still prevail in the market.
In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 100-60 per tonne on Tuesday.
The market lacks any significant data release today. However, traders should be eying base metals price support at the 40-day moving average for a direction, SMM said.
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