LME aluminium to be wighed on by a strong dollar ahead of US Fed conference

According to the analysts at Shanghai Metals Market, the base metal industry expects that the US Fed Chairwoman, in likelihood, will deliver 'hawkish speech' at the upcoming conference scheduled Friday, which will strengthen the US dollar. The speculation drove EIA crude oil stocks up. The market expects, according to SMM, the impact from upcoming OPEC oil output freeze meeting will fade bringing crude oil prices down. Aluminium traded on LME will stand somewhere between USD 1,635-1,655/mt.

Market expectations for the easing of monetary policies are cooling, which, analysts believe, will keep longs cautious. SHFE 1610 aluminium will hover in the range of RMB 12,240-12,450/mt.

Aluminium spot premiums of RMB 80-120/mt in east China's market are expected over SHFE 1609 aluminium contract.

The following chart shows LME aluminium finding a support level

Source: Reuters

LME ring deals fees cut in half this month

A fees cut in half has been announced by the LME for open outcry trades during August. The announcement, seen as a goodwill gesture by the traders, came after ring trading had to vacate its premises because of structural problems.

Ring trading moved to Chelmsford, east of London, in July after a potential safety issue was discovered in the building that houses its offices in London’s financial district.

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