
Aluminium traded on London Metal Exchange edged higher from US$1,651 on Tuesday to close at US$1,673 on Wednesday. The metal after falling to a 2-month low at US$1,612.50 on Thursday last week has improved on positive cues and is on an upward trajectory. According to Shanghai Metals Market forecast, LME aluminium will move at US$ 1,670-1,690/mt on Thursday.
Shanghai Futures Exchange aluminium prices, on the other side, are set for losses. The metal on Shanghai Metals Exchange dropped to US$ 2,144/mt (RMB 14528.39/mt) on Thursday after closing at US$2,146/mt (RMB 14541.94) on Wednesday. .jpg)
According to SMM forecast, SHFE 1612 aluminium will drop to RMB 13,450-13,650/mt. In China’s domestic market, spot aluminium should trade at premiums of RMB 500-540/mt over SHFE 1611 aluminium on Thursday, SMM added.
Base metal prices on the SHFE will return to range-bound trading on Thursday. “Overnight, base metal market staged no eye-catching performance, and range-bound trading is expected to be seen on Thursday’s base metal market,” says SMM.
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Key macroeconomic indicators:
• Market will eye China September industrial profit, US September durable goods orders and pending home sales today.
• Profit at above-scale Chinese industrial enterprises is expected to continue rising in September, but the growth will be not as high as in August
• US durable goods orders should grow in September, but any growth will be limited because Markit’s US manufacturing PMI was weak in September and new order index fell.
• US housing market remains positive.
In India futures trade on Wednesday, aluminium remained higher for the second day with prices rising further by 0.58 per cent to INR 111.95 per kg as traders enlarged their positions, tracking a firm trend on rising demand.
{alcircleadd}At the Multi Commodity Exchange, Mumbai, aluminium for delivery in October traded higher by 0.58 per cent to INR 111.95 per kg in business turnover of 2352 lots. Similarly, aluminium for delivery in November contracts edged up by 0.45 per cent to INR 112.30 per kg in 687 lots.
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