LME aluminium to hit yearly high on the last day of trading in 2017

LME aluminium is nearing a stupendous 2017 close. The light metal contract which has been seen rising from the lows of US$1,700 per tonne in the beginning of this calendar year to US$2,175 per tonne in October closed at US$2,246 per tonne yesterday, December 28. The bullish trend is influenced by improved marginal demand in the international market. This is expected to add positions today.

Technical analysis suggests that LME aluminium will rise further and stay strong at US$2,255-2,290 per tonne on Friday, December 29- the highest in last 12-month period.

Source: www.lme.com

As on December 28, LME official cash buyer aluminium price (Bid Price) stands at US$2,245 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,246 per tonne, 3M Bid Price is US$2,256 per tonne, 3M Offer Price is US$2,257 per tonne, Dec1 Bid Price is US$2,295 per tonne, and Dec1 Offer Price is US$2,300 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1103500 tonnes, total Live Warrants is 849275 tonnes, and Cancelled Warrant is 254225 tonnes.

SME and SHFE Aluminium price trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) followed the price movement of LME aluminium and rose from US$2,201 per tonne on Thursday, December 28, to US$2,256.37per tonne on Friday, December 29.

The price movement of main aluminium contract on Shanghai Futures Exchange (SHFE) on December 28, as updated by Shanghai Metals Market (SMM), is as follows:

SHFE aluminium which has been following the movement of its western counterpart rose to RMB 15,200 per tonne during Thursday’s night trading. The benchmark price for the contract is expected to range at RMB 15,050-15,250 per tonne today. Spot discount will widen further to RMB 410-370 per tonne, SMM said.

Due to surge in China’s aluminium export orders, SMM recommends reverse arbitrage with few positions for the short term.