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11 JANUARY 2017 AL CIRCLE

LME and Shanghai aluminium prices to climb higher as dollar strengthens overnight

EDITED BY : DIPANWITA GUPTA 2MINS READ

Fluctuations in LME aluminium are in full swing. The contract kept rising through Tuesday's night trading and ended higher at US$1,757 per tonne, up 2.32 per cent from the previous day's closing at US$1,717 per tonne. Shanghai Metals Market says LME aluminium will likely meet resistance at US$1,750 per tonne and will come down at US$1,730-1,755 per tonne range (still higher from the recent lows) on Wednesday, January 11.

The US dollar index, after hitting a two-day low, surged during night trading on Tuesday, and is expected to remain trade bound on Wednesday. According to SMM, the market focus will be on Barrack Obama's farewell speech and Donald Trump's press conference. A strong dollar supported the base metal price rise on the bourse. But volatility in the US dollar index is likely to continue, which will impact on LME aluminium price.

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As on January 10, LME official cash buyer price of aluminium stands at US$1,757 per tonne, cash seller & settlement price is US$1,757.5 per tonne, 3M buyer price is US$1,746 per tonne, 3M seller price is US$1,746.5, Dec1 buyer price is US$1,792 per tonne, and Dec1 seller price is US$1,797 per tonne. The current LME official Opening Stock of aluminium is estimated at 2215925 tonnes, total Live Warrants is 1577175 tonnes, and Cancelled Warrant is 655550 tonnes.

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In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,847 per tonne, up 2.04 per cent from previous day's price of US$1,810 per tonne.

Aluminium traded on Shanghai Futures Exchange is predicted to be range bound on Wednesday. SMM says the contract SHFE 1703 aluminium will meet strong resistance at the 40 and 60-day moving averages and will move in the range of RMB 12,800-13,080 per tonne, outperforming Tuesday's level.

Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 70-30 per tonne on Wednesday.

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Currency supply in China, in December, mostly fell short of or held flat at November's supply. This could signify a possible slowdown of the Chinese economy over the short term, meaning fewer contracts being signed and muted trading activity.

Tagged with:

Price LME SMM Aluminium

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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