
It's a near trade-war situation, when the President-elect of the world's most powerful economy tells his people that the currency value of the country is way "too strong" to compete with the Asian power called China. Just one more day to go, and then Donald Trump takes charge of the White House in the United States of America - before that, he calls out to China and its weakening currency, saying that for the U.S. companies to stand upright in the face of Chinese competition, the U.S. dollar value has to come down. His words send the U.S. dollar index down by one per cent to the lowest level in last one month, thereby lifting LME aluminium prices up by 1.78 per cent from Wednesday to US$1,832 per tonne after Thursday's night trading.
According to Shanghai Metals Market forecast, the contract will move within the range of US$1,810-1,830 per tonne on Friday, January 20.
As on January 19, LME official cash buyer price of aluminium stands at US$1,830 per tonne, cash seller & settlement price is US$1,832 per tonne, 3M buyer price is US$1,823 per tonne, 3M seller price is US$1,823.5 per tonne, Dec1 buyer price is US$1,855 per tonne, and Dec1 seller price is US$1,860 per tonne. The current LME official Opening Stock of aluminium is estimated at 2300550 tonnes, total Live Warrants is 1672025 tonnes, and Cancelled Warrant is 628350 tonnes. 
In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,930 per tonne on Friday, up 0.41 per cent from US$1,922 per tonne on Thursday.
Aluminium contract SHFE 1703 aluminium is likely to witness a drop on Shanghai Futures Exchange and move at RMB 13,300-13,450 per tonne on Friday as longs exit from the market, predicts SMM.
Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 120-80 per tonne on Friday.
{googleAdsense}
The base metals market is right now in a wait-n-watch mode. SMM says, traders should watch out for Trump’s inaugural address on Friday, as he did not divulge much on the economic policy in his last speech. " Any rise in US dollar market, supported by positive economic data, will be counteracted by wait-and-see stance and base metals will be mixed due to market uncertainty," says SMM.
Responses







