LME market resumes trading at low, Shanghai aluminium shows signs of firming up

<p>LME market is resuming trading today and LME aluminium is expected to climb higher due to firm Shanghai Futures Exchange prices. But Shanghai Metals Market says any rise will be limited with resistance from the moving averages. LME aluminium prices are expected to hover in the range of US$1,710-1,730 per tonne, says SMM. <br /><br />Looking at the key macroeconomic factors, Dallas Fed&rsquo;s December Business Activity Index and the US pending home sales in November are going to be released today. The US housing market is positive given the recent uptick in sales; job market is showing slow improvement; and CCI and home prices are rising. Supported by these factors, LME base metal prices are expected to move higher, after opening low on Wednesday, December 28.<br /><br />In China, benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,866 per tonne on December 28, up 0.97 per cent from the previous day. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/SME%20Aluminium%20prices.png" alt="News" width="517" height="226" />&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SME Price Source: http://en.shmet.com<br /><br />SHFE aluminium prices are showing firmness on the back of positive factors. SMM thinks, SHFE 1702 aluminium will move at RMB 12,850-13,050 per tonne on Wednesday, but may meet resistance at 20 and 60-day moving averages. Traders' attention should be on the effect of LME aluminium and the Chinese Yuan.<br /><br />{googleAdsense}<br /><br />Spot aluminium in China's domestic market should trade at premiums of RMB 80-120 per tonne on Wednesday, SMM observes.</p>