LME aluminium to gain further; Shanghai aluminium falters due to selective buying

LME aluminium is gaining strength. The light metal which has been struggling around US$1,860 per tonne since last 14 days finally seems to be retracing US$1,900 per tonne. Rising by 0.58 per cent from its previous close of US$1,886 per tonne on June 28, LME aluminium settled at US$1,897 per tonne on Thursday, June 29.

Shanghai Metals Market foresees that LME aluminium will rise to US$1,904-1,916 per tonne on Friday, June 30. However, the contract is likely to struggle at its 20-day and 10-day moving averages in the short term.

As on June 29, LME official cash buyer aluminium price stands at US$1,897 per tonne, cash seller & settlement aluminium price is US$1,897.50 per tonne, 3M buyer price is US$1,901 per tonne, 3M seller price is US$1,901.50 per tonne, Dec1 buyer price is US$1,935 per tonne, and Dec1 seller price is US$1,940 per tonne. The current LME official Opening Stock of aluminium is estimated at 1414125 tonnes, total Live Warrant is 1068225 tonnes, and Cancelled Warrant is 345900 tonnes.

LME aluminium premiums remain unchanged across major regions today. As on June 28, LME Aluminium US Premium stands at US$190, LME Aluminium West-Europe Premium is US$80, LME Aluminium East-Asia Premium is US$105, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).

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The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped to US$2,022 per tonne on Friday, June 30, down by 0.63 per cent from the previous day’s benchmark price of US$2,035 per tonne.

At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1708 aluminium opened at RMB 13,965 per tonne on Thursday, June 29, and then jumped to RMB 14,035 per tonne due to longs buying. Later, the contract lost some gain and settled at RMB 13,985 per tonne. SMM observes that SHFE 1708 aluminium will move at RMB 13,935-14,050 per tonne on Friday, June 30.  

Spot aluminium in east China market is expected to trade at discounts of RMB 140-100 per tonne over SHFE 1707 aluminium contract on Friday.

China Aluminum International Trading Co. (Chalco Trading) cut aluminium prices it offered in major markets today after two consecutive day’s price hikes. The revised prices are as follows:

Unit: RMB per tonne

The market focus will be on China’s official PMI in June, US annualized core PCE goods price index and University of Michigan’s final June CCI on Friday, SMM said.