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02 AUGUST 2019 AL CIRCLE

Both LME and SHFE aluminium plunged yesterday in absence of positive fundamentals; likely to trade lower today

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar came off from highs after the US President Donald Trump threatened China with a new 10% tariff. Donald Trump tweeted on Thursday that, starting September 1, the US will impose a 10% tariff on $300 billion of Chinese goods. Base metals fell for the most part. LME aluminium dipped 1.2% and SHFE aluminium dropped 0.3%.

LME aluminium cash contract plunged and closed the day’s trading at US$1757 per tonne. The fall continued during night trading. Three-month LME aluminium hovered below the daily moving average and failed to stand above the 10-day moving average, or US$1,792 per tonne, ending down 1.22% at US$1,777 per tonne overnight. The contract is seen trading at US$1,770-1,800 per tonne today. 

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LME

As on July 31, Wednesday, LME aluminium cash (bid) price stood at US$ 1776 per tonne, LME official settlement price stands at US$ 1776.50 per tonne; 3-months bid price stands at US$ 1806 per tonne, 3-months offer price is US$ 1807 per tonne; Dec 20 bid price stands at US$ 1908 per tonne, and Dec 20 offer price stands at US$ 1913 per tonne.

The LME aluminium opening stock increased to 1028875 tonnes yesterday. Live Warrants totalled at 780125 tonnes, and Cancelled Warrants were 248750 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1805 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) decreased to US$ 2010 per tonne today from US$ 2024 per tonne on Wednesday.

RED MUD

The most-traded SHFE September contract also lacked upward momentum as it fell 0.25% to close at RMB 13,820 per tonne, with resistance from 13,840 yuan/mt. Domestic higher inventories of primary aluminium suggested slow downstream consumption, which may keep the contract at 13,800-13,900 yuan/mt today.

Tagged with:

LME Price Aluminium

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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