LME aluminium sustains gains, while SHFE aluminium falls ahead of China GDP data release

LME aluminium managed to hold grounds as it showed modest gain to US$2,197.50 per tonne during morning trading hours on Wednesday, January 17. However, the light metal contract fell marginally to close at US$2,187 per tonne, still up from US$2,172 per tonne on Tuesday, January 16.

Shanghai Metals Market analysis suggests that LME aluminium will stay range-bound at US$2,175-2,200 per tonne on Thursday, January 18, with resistance at US$2,000 per tonne.

As on January 17, LME official cash buyer aluminium price (Bid Price) stands at US$2,186.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,187 per tonne, 3M Bid Price is US$2,193.50 per tonne, 3M Offer Price is US$2,194 per tonne, Dec1 Bid Price is US$2,248 per tonne, and Dec1 Offer Price is US$2,253 per tonne. LME aluminium opening stock stands at 1088725 tonnes, total Live Warrants is 839450 tonnes and Cancelled Warrants 249275 tonnes.

The Asian reference price for LME aluminium (3-months ABR) is US$2,182.20 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has slipped from US$2,247 per tonne on January 17 to US$2,242 per tonne on January 18.

On Shanghai Futures Exchange, SHFE aluminium price movement on January 17, as updated by Shanghai Metals Market, was as follows:

SHFE aluminium is continuing its downward trend as both trading volumes and open interest have dropped. SMM forecasts that SHFE aluminium will trade at RMB 14,500-14,700 per tonne on Thursday, January 18, with support at RMB 14,500 per tonne.

In the spot aluminium market, discounts are expected to move at RMB 170-130 per tonne today.