
The rising momentum in LME aluminium has taken the contract to US$1,931 per tonne on Wednesday, the highest since mid-May 2015. The spike of 0.66 per cent from its previous close is the highest LME aluminium has registered in last one week. The strong uptrend in the light metal is expected to continue over the short term driven by speculations that the US will post a higher GDP in the fourth quarter. Shanghai Metals Market says LME aluminium will move between US$1,945-1,970 per tonne on Thursday, March 30.
As on March 29, LME official cash buyer price of aluminium stands at US$1,930.50 per tonne, cash seller & settlement price is US$1,931 per tonne, 3M buyer price is US$1,938 per tonne, 3M seller price is US$1,938.50 per tonne, Dec1 buyer price is US$1,973 per tonne, and Dec1 seller price is US$1,978 per tonne. The current LME official Opening Stock of aluminium is estimated at 1912075 tonnes, total Live Warrants is 1011275 tonnes, and Cancelled Warrant is 900800 tonnes.
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As on March 28, LME Aluminium US Premium remains unchanged at US$215, LME Aluminium West-Europe Premium stands at US$95, LME Aluminium East-Asia Premium is US$100 and LME Aluminium South-East Asia Premium is US$15 (per tonne).
The benchmark price of aluminium remains unchanged at US$1,963 per tonne on Shanghai Metal Exchange (SME) as on March 30, Thursday.
SHFE 1705 aluminium traded on Shanghai Futures Exchange (SHFE) which opened at RMB 13,850 per tonne on Wednesday dropped marginally to end at RMB 13,835 per tonne. SMM analyses that the contract will keep fluctuating at around the 40-day moving average with increasing consumption and will meet resistance at RMB 14,000 per tonne. However, SHFE 1705 aluminium will find support at RMB 13,500 per tonne and trade between RMB 13,700-13,940 per tonne on Thursday.
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Spot aluminium in China's domestic market should trade at discounts of RMB 180-140 per tonne on Thursday, says SMM.
The focus of the market will be on the release of US Q4 GDP and PCE price index, Eurozone’s industrial, service and economic climate index and CCI on Thursday. The US dollar index rose marginally during Wednesday's night trading. Base metals will keep diverging on Thursday, foresees SMM.
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