
LME aluminium opened weakly on the first trading day of 2017 to close at US$1,702 per tonne after Tuesday's night trading. The price drop though marginal by 0.67 per cent from the previous closing of US$1,713.5 is expected to persist over the short term. Market will see a slight economic data calendar on Wednesday. Shanghai Metals Market forecasts that LME aluminium will fluctuate within the range of US$1,680-1,700 per tonne on Wednesday.
As on January 3, LME official Cash buyer price of aluminium stands at US$1,701 per tonne, cash seller and settle price is US$1,702 per tonne, 3M Buyer price is US$1,692.5 per tonne, 3M Seller price is US$1,693 per tonne, Dec1 Buyer price is US$1,735 per tonne, and Dec1 Seller price is US$1,740 per tonne. The current LME official stock of aluminium is estimated at 2205925 tonnes, total Live Warrants is 1524375 tonnes, and Cancelled Warrant is 677800 tonnes. .jpg)
In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,823 per tonne on Wednesday, January 4, marginally down by 0.87 per cent from the previous day.
Aluminium traded on Shanghai Futures Exchange, SHFE 1703 aluminium was the most actively traded contract on Tuesday. It opened at RMB 12,875 per tonne and closed down at RMB 12,630 per tonne. Aluminium premiums in China's domestic spot market remained at around RMB 100 per tonne. SMM predicts SHFE 1703 aluminium will move at RMB 12,520-12,760 per tonne and spot aluminium will likely trade at RMB 80-120 per tonne on Wednesday.
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Economic data that is to be released today will have limited effect on base metals basket on Wednesday. Traders' attention should be on the final reading of Eurozone’s Markit services and composite PMIs in December and fresh reading of CPI in December on a yearly basis.
“Both LME and SHFE staged declines during the first trading day of 2017 despite stabilizing at the tail of trading, and overall sentiment will remain weak, with slight upward revising expected,” says SMM.
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