LME on a downward track after the leap last week, to move within a narrow range

LME has been on a downward track for last few days after a big leap last week. The light metal contract which closed at US$2,128 per tonne on Monday, September 25, came down to close at US$2,116 per tonne on Tuesday, September 26. Technical analysis suggests that LME aluminium may test a support at US$2,125 per tonne, and as observed by Shanghai Metals Market, LME aluminium will move within USD 2,112-2,140/t today.

As on September 26, LME official cash buyer aluminium price (Bid Price) stands at US$ 2,115.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$ 2116per tonne, 3M Bid Price is US$ 2,136.50 per tonne, 3M Offer Price is US$ 2,137.50 per tonne, Dec3 Bid Price is US$ 2,247per tonne, and Dec3 Offer Price is US$ 2,252per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1284900 tonnes, total Live Warrants is 1006525 tonnes, and Cancelled Warrant is 278375 tonnes.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped from US$2,454 per tonne on Tuesday, September 26 to US$2,436 per tonne on Wednesday, September 27.

On Tuesday’s night trading on SHFE, base metals came under pressure from a rallying dollar, and price divergence is expected to be continuing.  Traded Prices for Aluminum Capacity Swap Quota Break through 10,000 Yuan/Tonne

The US will release durable goods orders and existing home sales data today. Market will eye speech by Trump over tax reform.