LME aluminium to remain range-bound, SHFE designates warehouse for aluminium delivery

Volatility is setting in across global base metal prices amid cautious market sentiment. LME aluminium after trading at around US$1,752/mt on Wednesday stumbled 0.91 per cent to close at US$1,736/mt on Thursday, December 15. Shanghai Metals Market forecast says, the contract will keep ranging at USD 1,725-1,750/mt on Friday, December 16.

As on December 15, the LME Official CASH Buyer Price of aluminium stands at US$1735/mt, CASH Seller & Settlement price is US$1736/mt, 3M Buyer price is US$1728/mt, and 3M Seller price is US$1729/mt. The total LME Official Opening stock of aluminium is estimated at 2092175 tonnes; total Live Warrants is estimated at 1414175 tonnes and Cancelled Warrant is recorded at 675250 tonnes.

Global oil market is predicted move into a deficit during H1 2017 with demand potentially outstripping supply by some 600,000 bbl/day. This will boost oil prices significantly which in turn will support aluminium prices, opine analysts.


Aluminium traded on Shanghai Metal Exchange is following a downward trend. The contract on SME was traded at around US$1,836/mt on Thursday, down 2.39 per cent from the previous day.

Base metals prices on the Shanghai Futures Exchange are predicted to keep fluctuating today. SHFE 1702 aluminium dropped to the 60-day moving average on Thursday and will move at RMB 12,880-13,100/mt on Friday with stock- building demand in China’s domestic market, says SMM.

Spot aluminium in China's domestic market is expected to trade at discounts of RMB 40-0/mt on Friday.

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SHFE announced approval of another warehouse as delivery warehouse for aluminium. Guangdong Zhongchu Shengshi Zhaobang Logistics Co.’s warehouse in Xiaotangxi goods yard in Shishan Town, Guangdong Province was designated as delivery warehouse with an authorized capacity of 20,000 tonnes for aluminium.