LME aluminium strengthens while SMM foresees fluctuation in SHFE prices

<p>LME aluminium strengthened as speculation over positive key macroeconomic data to be released on Friday and in the short term supported commodity prices. The U.S dollar futures index neared a one-week high during afternoon trading on Thursday, after European Central Bank President Mario Draghi announced there will be no talk of tapering stimulus to zero. <br /><br />Oil rebounded from the week's lows to close above US$50 a barrel on Thursday as market watchers focused on an upcoming weekend meeting between OPEC and non-OPEC producers that may result in an agreement to cut crude output further, reported CNBC. <br /><br />LME aluminium closed at US$1,731.50/mt after Thursday's night trading, up 0.20 per cent from the previous losing of US$1,728/mt. According to Shanghai Metals Market forecast, LME aluminium will range between USD 1,710-1,735/mt on Friday, December 9. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20aluminium.png" alt="News" width="517" height="226" /><br />Aluminium traded on Shanghai Metal Exchange, traded at US$1,922/mt on Thursday. The contract is expected to trade higher today on the bourse as speculation over China's economic data to be released today seem to be growing positive among domestic traders. <br /><br />Base metal prices on the SHFE are expected to diverge on Friday. SHFE 1702 aluminum started at RMB 13,050/mt and finally ended at RMB 13,110/mt on Thursday. The contract will keep fluctuating at RMB 13,000-13,250/mt on Friday, foresees SMM.<br /><br />{googleAdsense}<br /><br />As on December 9, prices of A00 Aluminum Ingot in China's major consuming markets have followed a sinusoidal curve with a south-bound gradient, as follows:<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Graph%202.png" alt="News" width="517" height="226" /></p>