LME aluminium stumbles after hitting nine-month highs on Jan 24

LME aluminium fell after Wednesday's night trading to US$1,849 per tonne, down 1.12 per cent from the previous day's price of US$1,870 per tonne. Analysts opine a faltering crude oil is responsible for the marginal decline in the metal price. According to Shanghai Metals Market forecast, the contract will move at US$1,810-1,840 per tonne on Thursday, January 26.

As on January 25, LME official cash buyer price of aluminium stands at US$1,848.5 per tonne, cash seller & settlement price is US$1,849 per tonne, 3M buyer price is US$1,844 per tonne, 3M seller price is US$1,844.5 per tonne, Dec1 buyer price is US$1,873 per tonne, and Dec1 seller price is US$1,878 per tonne. The current LME official Opening Stock of aluminium is estimated at 2284725 tonnes, total Live Warrants is 1635675 tonnes, and Cancelled Warrant is 654400 tonnes.

In China, the benchmark price of aluminium on Shanghai Metal Price Index (SHMETX) stands at RMB 13,350 on Thursday, January 26. The average Shanghai Bonded Warehouse Premium is US$ 110 per tonne.

SHFE 1703 aluminium traded on Shanghai Futures Exchange opened at RMB 14,075 per tonne on Wednesday and then closed lower at RMB 14,050 per tonne after finding support at RMB 14,000 per tonne. Trading volumes were up to 365,258 lots and positions were down 14,788 to 257,794. SMM says the contract might decline after the Chinese New Year Holiday due to a temporary slowing down in trading activity. SHFE 1703 aluminium is likely to range between RMB 13,700-13,900 per tonne on Thursday.

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Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 240-2000 per tonne on Thursday.

SMM updated that the market will remain closed from January 27 till February 2 on account of the Chinese New Year holiday. Trading will resume on February 3.