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09 DECEMBER 2016 AL CIRCLE

LME aluminium strengthens while SMM foresees fluctuation in SHFE prices

EDITED BY : DIPANWITA GUPTA 2MINS READ

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.

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.

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.

News
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.

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.

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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:

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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