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

<p>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. <br /><br />As on December 15, the LME Official CASH Buyer Price of aluminium stands at US$1735/mt, CASH Seller &amp; 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. <br /><br />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. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20aluminium(2).png" alt="News" width="517" height="226" /><br />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. <br /><br />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&rsquo;s domestic market, says SMM.<br /><br />Spot aluminium in China's domestic market is expected to trade at discounts of RMB 40-0/mt on Friday.<br /><br />{googleAdsense}<br /><br />SHFE announced approval of another warehouse as delivery warehouse for aluminium. Guangdong Zhongchu Shengshi Zhaobang Logistics Co.&rsquo;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.</p>