The World Bank has hiked its yearly forecast for base metals prices. It expects the base metals prices to log a 16 per cent annual growth rate, compared to the 11 per cent expected in January this year. Strong demand for the metals in China alongside higher disruption rate at mines in Chile, Indonesia and Peru is expected to precipitate the supply tightness.
The price rise in LME aluminium came to an early halt yesterday as the light metal after rising for two consecutive days closed at US$1,954.50 per tonne on Thursday, April 27. Reuters’ analysis says LME aluminium may retest a support at US$1,921 per tonne, a break below which could cause a further loss into the range of US$1,900-US$1,908.
{alcircleadd}According to Shanghai Metals Market (SMM) forecast, LME aluminium is likely to rally to US$1,915-1,945 per tonne on Friday, April 28, after a slump yesterday night.
As on April 27, LME official cash buyer price of aluminium stands at US$1,954 per tonne, cash seller & settlement price is US$1,954.50 per tonne, 3M buyer price is US$1,961.50 per tonne, 3M seller price is US$1,962 per tonne, Dec1 buyer price is US$1,998 per tonne, and Dec1 seller price is US$2,003 per tonne. The current LME official Opening Stock of aluminium is estimated at 1652200 tonnes, total Live Warrants is 990900 tonnes, and Cancelled Warrant is 661300 tonnes.
LME aluminium premiums, as on April 26, remain unchanged across major regions. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium US Premium is US$215, LME Aluminium West-Europe Premium is US$95, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).
The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped to US$2,038 per tonne on April 28, Friday, down 0.82 per cent from Thursday's benchmark aluminium price of US$2,055 per tonne.
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Aluminium futures contracts traded on Shanghai Futures Exchange (SHFE) diverged significantly during overnight trading. SMM expects the conditions to be continuing through Friday as well. The projected price range for SHFE 1706 aluminium on Friday, April 28, is US$14,080-14,380 per tonne.
Spot aluminium in China's domestic market is projected to trade at discounts of RMB 160-120 per tonne over SHFE 1705 aluminium on Friday, April 28.
The macroeconomic data calendar on Friday features the release of Q1 GDP data of France, UK and the US, annualized Q1 PCE goods price index of the US, and University of Michigan’s April CCI, inflation data from eurozone and its economies.
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