
LME aluminium registered some gain over yesterday’s trading as the dollar index slipped by 0.1 per cent to 89.29 and closed lower as it met some strong resistance. The light metal contract finally closed at US$2035 per tonne on Tuesday March 27. Shanghai Metals Market expects the contract to trade at US$2,030-2,055 per tonne today.

As on March 27, LME aluminium cash (bid) price stands at US$ 2034 per tonne, LME official settlement price stands at US$ 2035 per tonne; 3-months bid price stands at US$ 2055 per tonne, 3-months offer price is US$ 2056 per tonne; Dec 19 bid price stands at US$ 2110 per tonne, and Dec 19 offer price is US$ 2115 per tonne.
The LME aluminium opening stock has dropped to 1268175 tonnes. Live Warrants totalled at 1031525 tonnes, and Cancelled Warrants were 236650 tonne.
LME aluminium 3-months ABR price is hovering low at US$ 2065.54 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped slightly from US$ 2182 per tonne on March 27 to US$ 2175 per tonne on March 28. However, it is showing an upward trend with the pickup of the season.
SHFE aluminium managed to rise above the five-day moving average and is expected to trade at RMB 13,720-13,900 per tonne as consumption picks up and the trade tension eased to certain extent and short positions exited the market. SMM expects it to remain firm tonight but with relatively strong pressure from the five-day moving average if no substantial progress is achieved during the negotiation between China and the US.
Data from the US, such as personal consumption expenditures for the fourth quarter of 2017, gross domestic product, wholesale inventories and pending home sales index for February, and weekly crude oil inventories, are some key factors to watch today. The US dollar inched up but still hovered at low levels overnight. The trend is likely to continue today. Base metals are expected to trade rangebound with limited momentum in the short term.
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