
LME aluminium prices have staged a reversal and how. With Donald Trump winning the US Presidential elections yesterday, the market saw an uptick in trading and light metal used in cans to aircrafts soared significantly to close at US$ 1,737.50/mt.
The trend is expected to continue in the short term as analysts predict a drop in the US dollar index. This will drive LME aluminium up on Thursday, November 10, when it will likely move in the range of US$1,740-1,770/mt, said SMM in an early morning forecast. However, markets are suggested to keep wary on a technical decline..jpg)
In China, aluminium traded on Shanghai Metal Exchange, closed at US$2,174/mt after Wednesday’s night trading. The contract opened at US$2,234/mt on Thursday, November 10, rising 2.75 per cent on the bourse.
SHFE 1701 aluminium, on the other side, started at RMB 13,540/mt and then climbed to a daily-high of RMB 13,695/mt on Wednesday. Post Trump win prices volatized sharply both in stock market and commodities market. SHFE 1701 aluminium plumped to RMB 13,390/mt in a short time but later regained some lost ground, thanks to positions closing by shorts. The contract fell again to below the moving average, hurt by exit of longs, and finally ended at RMB 13,490/mt, reported SMM.
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SHFE 1701 aluminium is predicted to hover at highs for the short term with fading uncertain factors. The contract will be more likely to rise due to positive technical indicators. In China’s spot market, aluminium is still at around a high level of RMB 400/mt. The futures should trade at premiums of RMB 350-390/mt on Thursday, predicts SMM.
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