LME aluminium slips as ingot supply increases; SHFE aluminium under pressure

LME aluminium price dropped as ingot flow increased and US dollar index regained strength on Tuesday, January 16. The light metal contract which started the week at around US$2,233 per tonne, slipped to US$2,172 per tonne after night trading yesterday.

Shanghai Metals Market analysis suggests that LME aluminium will trade at US$2,180-2,200 per tonne with support at the 20-day moving average on Wednesday, January 17.

As on January 16, LME official cash buyer aluminium price (Bid Price) stands at US$2,171.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,172 per tonne, 3M Bid Price is US$2,181 per tonne, 3M Offer Price is US$2,181.50 per tonne, Dec1 Bid Price is US$2,242 per tonne, and Dec1 Offer Price is US$2,247 per tonne. LME aluminium opening stock stands at 1083800 tonnes, total Live Warrants is 837350 tonnes and Cancelled Warrants 246450 tonnes.

The Asian reference price for LME aluminium (3-months ABR) is US$2,205.36 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has dropped from US$2,286 per tonne on January 16 to US$2,247 per tonne on January 17.

On Shanghai Futures Exchange, SHFE aluminium price movement on January 16, as updated by Shanghai Metals Market, was as follows:

SHFE aluminium after hitting RMB 14,725 per tonne on Tuesday, January 16, is headed for further lows today as bulls seem to be closing out their positions in Shanghai market. SMM thinks SHFE aluminium will trade at RMB 14,500-14,750 per tonne today with support at RMB 14,500 per tonne.

In the spot aluminium market, discounts are expected to move at RMB 90-50 per tonne today.