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24 JANUARY 2017 AL CIRCLE

Uptrend in LME aluminium gains momentum; weak dollar to support Shanghai prices

EDITED BY : DIPANWITA GUPTA 3MINS READ

LME aluminium is continuing its rise. The contract having risen 1.68 per cent from the previous day's closing of US$1,839 per tonne, ended at US$1,870 per tonne after Monday's night trading. Shanghai Metals Market forecast says LME aluminium may meet some resistance and hover at US$1,830-1,840 per tonne on Tuesday, January 24.

As on January 23, LME official cash buyer price of aluminium stands at US$1,868 per tonne, cash seller & settlement price is US$1,870 per tonne, 3M buyer price is US$1,861 per tonne, 3M seller price is US$1,863 per tonne, Dec1 buyer price is US$1,885 per tonne, and Dec1 seller price is US$1,890 per tonne. The current LME official Opening Stock of aluminium is estimated at 2298625 tonnes, total Live Warrants is 1628600 tonnes, and Cancelled Warrant is 660675 tonnes.

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In China, the benchmark price of aluminium on Shanghai Metal Exchange stands at US$1,968 per tonne on Tuesday, down 0.25 per cent from US$1,973 per tonne on Monday.   

SHFE 1703 aluminium traded on Shanghai Futures Exchange opened at RMB 13,735 per tonne on Monday and then came down to close at RMB 13,690 per tonne due to falling trading volume. However, SMM says this slide is transitory. SHFE 1703 aluminium will soon pick up its momentum and move in the range of RMB 13,590-13,800 per tonne before the Chinese New Year holidays begin.

Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 160-120 per tonne on Tuesday.   

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According to SMM, the dollar is under downward pressure, and that will support Shanghai aluminium price at its highs.

"Trading sentiment in China’s domestic market will be light as market players leave for the upcoming 2017 Chinese New Year holiday,” predicts SMM.

MCX Aluminium Update:

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Aluminium futures contract traded on Mumbai's Multi Commodity Exchange is also gaining strength. The contract has been rising over the last three weeks at a stretch. On Friday, it rose sharply from the intra-week low of INR120.65 to close 2 per cent higher for the week. Analysts opine, MCX aluminium will sustain above the immediate support at INR124 this week. In the past three weeks, the contract has sky-rocketed by about 8 per cent buoyed by higher spot demand.

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Tagged with:

Aluminium Price LME SMM China

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EDITED BY : DIPANWITA GUPTA 3MINS READ

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