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12 APRIL 2019 AL CIRCLE

A rising US dollar puts pressure on LME; SHFE continues to stay bullish on falling inventory

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index sharply rose on Thursday, driven by strong producer prices and unemployment claims. Base metals mostly traded lower across the board on Thursday. LME aluminium slipped 0.4% and SHFE aluminium dipped 0.07%.

Pressurised by the stronger greenback, three-month LME aluminium fell to a one-month low of US$1,854 per tonne before it recovered some losses to end 0.4% lower at US$1,859 per tonne, below all moving averages, on Thursday. LME aluminium is expected to trade at US$1,850-1,880 per tonne today.

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As on April 12, LME aluminium cash (bid) price stood at US$ 1846.50 per tonne, LME official settlement price stands at US$ 1847.50 per tonne; 3-months bid price stands at US$ 1862.50 per tonne, 3-months offer price is US$ 1863.50 per tonne; Dec 20 bid price stands at US$ 1993 per tonne, and Dec 20 offer price stands at US$ 1998 per tonne. 

The LME aluminium opening stock dropped to 1086075 tonnes. Live Warrants totalled at 692700 tonnes, and Cancelled Warrants were 393375 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1866 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange continues its flat run and drops slightly to US$2057 per tonne today from US$ 2058 per tonne on April 11.

Domestic social inventories of primary aluminium registered a smaller week-on-week decline of some 5,000 tonnes and this grew shorts in the most-active SHFE May contract at noon yesterday. The contract slid from a high of RMB13,845 per tonne and finally settled at RMB13,830 per tonne. The most traded May contract then traded ranegbound to end marginally lower at RMB13,820 per tonne overnight. It is expected to trade at RMB13,790-13,860 per tonne today with spot premiums of up to RMB 20 per tonne.

Tagged with:

LME Price Inventory Aluminium

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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