
LME aluminium is continuing its uptrend. Even as the US dollar firmed up following the successful summit meeting between Japan's Prime Minister Shinzo Abe and Donald Trump the lightmetal traded on LME has shown little signs of decline. The contract after opening lower on Monday, February 13, gained strength and closed at US$1,867.50 per tonne after night trading, up one per cent from the previous closing of US$1,849 on Friday, February 10. Shanghai Metals Market (SMM) in its forecast said, LME aluminium will hover at US$1,860-1,900 per tonne on Tuesday, February 14, with mixed factors.
As on February 13, LME official cash buyer price of aluminium stands at US$1,867 per tonne, cash seller & settlement price is US$1,867.50 per tonne, 3M buyer price is US$1,871 per tonne, 3M seller price is US$1,872 per tonne, Dec1 buyer price is US$1,918 per tonne, and Dec1 seller price is US$1,923 per tonne. The current LME official Opening Stock of aluminium is estimated at 2225850 tonnes, total Live Warrants is 1648675 tonnes, and Cancelled Warrant is 577175 tonnes.
In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) has scaled further higher at US$2,006 per tonne on Tuesday against US$1,980 per tonne on Monday (+1.31 per cent).
Aluminium contract traded on Shanghai Futures Exchange- SHFE 1704 aluminum opened at RMB 14,020 per tonne on Monday and then after fluctuating throughout the day closed down at RMB 14,035 per tonne. SMM says SHFE 1704 aluminum will be largely affected by other metals on the board. The contract is likely to move in the range of RMB 14,000-14,250 per tonne on Tuesday.
Spot aluminium in China's domestic market is expected to trade at discounts of RMB 220-180 per tonne on Tuesday.
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Base metals including aluminium are forecasted to continue diverging in the near term. “The US dollar is expected to keep advancing, and price divergence among base metals is expected to be accelerating,” says SMM.
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