LME aluminium finally took a hiatus from its recent slide to close at US$1,887 per tonne after night trading on Thursday, May 12. The light metal traded globally rose 0.9 per cent from its previous close of US$1,870 per tonne mainly on the news of China shutting down outdated and illegal aluminium capacity. It is learnt from the latest Scrap Register report that China closed 32000 tonnes per year of aluminium smelting capacity in 2016 in order to improve supply scenario of the base metal.
According to Shanghai Metals Market (SMM) forecast, LME aluminium will test support at the 5-day moving average (US$1,883.4 per tonne) and range at US$1,865-1,890 per tonne on Friday, May 12.
As on May 11, LME official cash buyer price of aluminium stands at US$1,885 per tonne, cash seller & settlement price is US$1,887 per tonne, 3M buyer price is US$1,889 per tonne, 3M seller price is US$1,890 per tonne, Dec1 buyer price is US$1,930 per tonne, and Dec1 seller price is US$1,935 per tonne. The current LME official Opening Stock of aluminium is estimated at 1564800 tonnes, total Live Warrants is 968475 tonnes, and Cancelled Warrant is 596325 tonnes.
LME aluminium premiums, as on May 10, 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) stands at US$1,985 per tonne on Friday, May 12, down 0.1 per cent from the benchmark aluminium price of US$1,987 per tonne on Thursday, May 11.
SMM predicts that aluminium futures contracts traded at Shanghai Futures Exchange (SHFE) including SHFE 1707 aluminium should trade at lows of RMB 13,700-13,900 per tonne on Friday, and spot aluminium in east China market will be traded at discounts of RMB 0-20 per tonne over SHFE 1705 aluminium on Friday.
The market focus will be on US’s April monthly retail sales, April annual CPI and The University of Michigan consumer confidence index in May, eurozone’s March industrial production after seasonally adjustment and Germany’s fresh reading of Q1 2017 GDP on Friday, May 12, SMM said.
Source: http://www.alcircle.com
