LME aluminium to see tight range-bound trading as the greenback recovers

LME aluminium rose for a day on Monday only to give in to the downward pressure of a strengthening dollar on Wednesday, January 8. The contract ended at US$1,809 per tonne after Tuesday's night trading, down marginally by 0.16 per cent from the previous day's closing of US$1,812 per tonne. Shanghai Metals Market (SMM) forecast says LME aluminium will range between US$1,820-1,835 per tonne on Wednesday.

As on February 7, LME official cash buyer price of aluminium stands at US$1,808 per tonne, cash seller & settlement price is US$1,809 per tonne, 3M buyer price is US$1,823 per tonne, 3M seller price is US$1,824 per tonne, Dec1 buyer price is US$1,872 per tonne, and Dec1 seller price is US$1,877 per tonne. The current LME official Opening Stock of aluminium is estimated at 2249125 tonnes, total Live Warrants is 1655750 tonnes, and Cancelled Warrant is 598900 tonnes.

As on February 4, LME Aluminium US Premium stands at US$205, LME Aluminium West-Europe Premium is US$80, LME Aluminium East-Asia Premium is US$95, and LME Aluminium South-East Asia Premium is US$15.

In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) jumped to touch US$1,959 per tonne on Wednesday, February 8, rising almost 2 per cent from the Tuesday's price of US$1,924 per tonne.

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Aluminium traded on Shanghai Futures Exchange- SHFE 1703 aluminium opened at RMB 13,690 per tonne but later lost ground and closed down at RMB 13,600 per tonne on Tuesday. SMM says, "The contract will remain weak in the foreseeable future." It will drop below the 10-day moving average and move at RMB 13,550-13,800 per tonne range on Wednesday.

Spot aluminium in China's domestic market is expected to trade at discounts of RMB 270-230 per tonne on Wednesday.