LME aluminium to rise further as outlook for base metals remains optimistic

LME aluminium price continues to rise. On Wednesday, the contract closed at US$1,765/mt and Shanghai Metals Exchange says it will range between US$1,760-1,795/mt on Thursday, November 24. The current cash buyer price of LME aluminium is recorded at US$1765/mt and LME official opening stock of the metal stands at 2136300 tonnes.

LME Asian Reference Price of aluminium (3-months ABR) as on November 24, is estimated at US$1754.08/mt.

In China, aluminium on Shanghai Metal Exchange traded at US$2,174/mt on Wednesday. On Thursday it opened at US$2,154/mt down 0.91 per cent from the previous close.

Aluminium traded on Shanghai Futures Exchange- SHFE 1712 aluminium will be refrained by soft spot aluminium. Suppliers rushed to sell goods in China’s domestic market hurting SHFE 1701 aluminium. However, optimistic outlook supports the contract. SMM says, SHFE 1701 aluminium will keep fluctuating at RMB 13,800-14,070/mt on Thursday, supported by other strong base metals.

“LME market overnight registered a big rise, and Shanghai market today will keep a strong tone,” says SMM.

Spot aluminum in China’s domestic market is expected to trade at premiums of RMB 280-320/mt on Thursday.

As per SMM update, the key macroeconomic indicators for the base metal prices are:

• Closure of US financial markets today on the occasion of Thanksgiving Day
• Germany’s annualized Q3 growth likely to remain low around 1.5 per cent
• Gfk November CCI will be released today
• FOMC’s November meeting minutes released this morning expressed a hawkish tone

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