LME and Shanghai aluminium prices to move lower due to tight year-end liquidity

<p>The London Metal Exchange market after remaining closed over the weekend till Tuesday, for Christmas, resumed trading yesterday on a low note. Aluminium traded on the bourse closed at US$1,726.5 per tonne after Wednesday's night trading, down 0.77 per cent from the previous closing of US$1,740 per tonne on Friday. The contract dropped below the 60-day moving average and is expected to range between US$1,695-1,720 per tonne on Thursday, December 29. <br /><br />&ldquo;LME base metal market reported weak price after returning from Christmas holiday, and overall sentiment is expected to remain weak due to tight year-end liquidity and low trading sentiment before year-end,&rdquo; says Shanghai Metals Market analysis. &nbsp;<br /><br />LME Aluminium price has risen from the lows of 2015 (around US$1,400 per tonne) to a fairly high US$1,755 per tonne in mid-December 2016, charting occasional bounces through the last twelve months. For a quick recap of 2016 LME aluminium price trend and the top aluminium news of the year gone by, click <a title="News" href="http://www.alcircle.com/primary_aluminium/newscircle/general/detail/26669/recap-2016-the-year-of-focused-sustainability-for-primary-aluminium" target="_blank">Recap 2016</a>. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20Aluminium_Dec%2029.png" alt="News" width="517" height="277" /><br />In China, benchmark price of aluminium on Shanghai Metal Exchange stood at US$1,836 per tonne, down 1.6 per cent from the previous day. <br /><br />Aluminium price on Shanghai Futures Exchange also weakened overnight given the year-end liquidity crunch and cautious market sentiment. The weakening of spot market showed through SHFE trading as SHFE 1702 aluminium fluctuated between RMB 12,500-13,000 per tonne on Wednesday. The contract is likely to move at RMB 12,500-12,750 per tonne range and keep testing support at RMB 12,500 per tonne, predicts SMM. <br /><br />{googleAdsense}<br /><br />Spot aluminium in China&rsquo;s domestic market is expected to trade at RMB 80-120 per tonne on Thursday, says SMM.<br /><br />API crude oil inventories last week for the US released this morning expectedly surged, weighing on oil price. This further kept base metal prices low across the boards.</p>