LME aluminium to edge higher at US$1,920, SHFE aluminium likely to hover at lows

<p>The downtrend in LME aluminium prices continued till Monday's trading hours until the contract found support at 40-day moving average of US$1,857 per tonne. The closing price on Tuesday, US$1,858 per tonne, was 0.53 per cent higher than the previous day's closing at US$1,868 per tonne. Reuters predicts LME aluminium will clear a resistance at US$1,880 per tonne and edge higher at US$1,920 per tonne on Wednesday, March 8. According to Shanghai Metals Market (SMM) forecast, LME aluminium will trade at US$1,870-1,895 per tonne on Wednesday.</p> <p>As on March 7, LME official cash buyer price of aluminium stands at US$1,857 per tonne, cash seller &amp; settlement price is US$1,858 per tonne, 3M buyer price is US$1,866 per tonne, 3M seller price is US$1,867 per tonne, Dec1 buyer price is US$1,910 per tonne, and Dec1 seller price is US$1,915 per tonne. The current LME official Opening Stock of aluminium is estimated at 2117875 tonnes, total Live Warrants is 1298825 tonnes, and Cancelled Warrant is 819050 tonnes.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LMEAluminiumMarch8.png" alt="News" width="517" height="275" /></p> <p>In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) has inched higher at US$1,962 per tonne, up 0.25 per cent from its previous day's benchmark price of US$1,957 per tonne on Tuesday.</p> <p>Aluminium traded on Shanghai Futures Exchange (SHFE) fluctuated narrowly impacted on by the LME aluminium and a rising dollar, of course. SHFE 1705 aluminum after opening at RMB 13,900 per tonne fell to close at RMB 13,850 per tonne on Tuesday. The contract is expected to test support at RMB 13,700 per tonne and the 40-day moving average and trade between RMB 13,770-13,970 per tonne on Wednesday.</p> <p>{googleAdsense}</p> <p>Spot aluminium in China's domestic market is expected to trade at discounts of RMB 170-130 per tonne on Wednesday. Traders should watch out for February ADP employment of the US, SMM suggests.</p> <p>Import-export in China will keep rising in February, indicated increasing new export orders and new orders of official and Caixin manufacturing PMIs. China&rsquo;s foreign exchange reserves also rose to RMB 3 trillion in February, raising positive market sentiment.</p>