LME aluminium to rise further as outlook for base metals remains optimistic

<p>LME aluminium price continues to rise. On Wednesday, the contract closed at US$1,765/mt and Shanghai Metals Exchange says it will range between US$1,760-1,795/mt on Thursday, November 24. The current cash buyer price of LME aluminium is recorded at US$1765/mt and LME official opening stock of the metal stands at 2136300 tonnes.<br /><br />LME Asian Reference Price of aluminium (3-months ABR) as on November 24, is estimated at US$1754.08/mt. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20prices(17).jpg" alt="News" width="517" height="226" /><br />In China, aluminium on Shanghai Metal Exchange traded at US$2,174/mt on Wednesday. On Thursday it opened at US$2,154/mt down 0.91 per cent from the previous close. <br /><br />Aluminium traded on Shanghai Futures Exchange- SHFE 1712 aluminium will be refrained by soft spot aluminium. Suppliers rushed to sell goods in China&rsquo;s domestic market hurting SHFE 1701 aluminium. However, optimistic outlook supports the contract. SMM says, SHFE 1701 aluminium will keep fluctuating at RMB 13,800-14,070/mt on Thursday, supported by other strong base metals.<br /><br />&ldquo;LME market overnight registered a big rise, and Shanghai market today will keep a strong tone,&rdquo; says SMM. <br /><br />{googleAdsense}<br /><br />Spot aluminum in China&rsquo;s domestic market is expected to trade at premiums of RMB 280-320/mt on Thursday. <br /><br />As per SMM update, the key macroeconomic indicators for the base metal prices are:<br /><br />&bull; Closure of US financial markets today on the occasion of Thanksgiving Day<br />&bull; Germany&rsquo;s annualized Q3 growth likely to remain low around 1.5 per cent<br />&bull; Gfk November CCI will be released today<br />&bull; FOMC&rsquo;s November meeting minutes released this morning expressed a hawkish tone <br /><br /></p>