
LME aluminium prices are set for further correction. The light metal contract which closed at US$2,082 per tonne on Tuesday, September 5, came down by 0.6 per cent to close at US$2,069.50 per tonne after night trading on Wednesday, September 6. Reuters’ technical analysis suggests that LME aluminium may fall further towards US$1,958 per tonne in the near term as it failed to break a key resistance at US$2,119 per tonne. On breaking above US$2,114 per tonne mark, it may rise up to US$2,125 per tonne.
According to Shanghai Metals Market forecast, LME aluminium positions improved significantly; so, it should move higher within the range of US$2105-2,125 per tonne on Thursday, September 7.
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As on September 6, LME official cash buyer aluminium price (Bid Price) stands at US$2,069 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,069.50 per tonne, 3M Bid Price is US$2,091 per tonne, 3M Offer Price is US$2,092 per tonne, Dec3 Bid Price is US$2,205 per tonne, and Dec3 Offer Price is US$2,210 per tonne. LME aluminium Opening Stock stands at 1324550 tonnes, total Live Warrants is 1152250 tonnes, and Cancelled Warrant is 172300 tonnes.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has inched up from US$2,458 per tonne on Wednesday, September 6, to US$2,467 per tonne on Thursday, September 7.
At Shanghai Futures Exchange, aluminium prices fell overnight leading to bearish sentiment in east China spot aluminium market. Mainstream traded prices hovered at RMB 16,070-16,080 per tonne range in Shanghai. SMM predicts that the most active aluminium contract SHFE 1711 aluminium will move higher within RMB 16,350-16,550 per tonne on Thursday, September 7.
In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 170-130 per tonne on Thursday.
LME aluminium positions rose sharply during Wednesday’s trading hours as risk version cooled down after US President Donald Trump said military action to North Korea is “not the first option.” On Thursday, September 7, market focus will be primarily on the US dollar index movement, SMM said.
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