
LME aluminium is trending high supported by a dipping dollar index, low inventory, strong demand, and positive Chinese economic data. The light metal closed higher at US$2,140 per tonne on Friday, October 13, rising from US$2,117.5 per tonne on Thursday, October 12. Shanghai Metals Market observes that the light metal contract will continue to move within the range of US$2,125-2,155 per tonne on Monday, October 16.
Reuters’ technical analysis suggests that LME aluminium may retest a support at US$2,130 per tonne; a break above the level could cause a loss toward the next support level at US$2,117 per tonne in the near term.
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As on October 13, LME official cash buyer aluminium price (Bid Price) stands at US$2,139 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,140 per tonne, 3M Bid Price is US$2,160 per tonne, 3M Offer Price is US$2,160.50 per tonne, Dec1 Bid Price is US$2,208 per tonne, and Dec1 Offer Price is US$2,213 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1229750 tonnes, total Live Warrants is 969700 tonnes, and Cancelled Warrant is 260050 tonnes.
SME and SHFE aluminium price trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has slipped from US$2,472 per tonne on Friday, October 13, to US$2,470 per tonne on Monday, October 16.
Base metals on SHFE mostly diverged from their LME counterparts contracts last week. SMM thinks non-ferrous metal contracts will draw support from the positive Chinese September economic data and strong ferrous metals on the bourse. The most active contract SHFE 1712 aluminium is expected to range between RMB 16,450-16,700 per tonne on Monday, October 16.
In China’s domestic spot aluminium market, spot discounts are expected to range between RMB 100-60 per tonne over SHFE 1710 aluminium on Monday, October 16, on nearing of its delivery, SMM said.
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