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02 NOVEMBER 2018 AL CIRCLE

Both LME and SHFE continue downward trend in absence of strong market fundamentals; likely to stay weak in short term

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar retreated from multi-month highs on Thursday while the pound rose the most in nine months on reports that London is close to a financial services deal with Brussels. Most LME and SHFE base metals ended in the black overnight and aluminium dipped 0.1%.

LME aluminium closed Thursday's trading at US$ 1961 per tonne, slightly lower than the day before. While the aluminium contract reversed some gains it made on dips in the dollar, it continued its three-day losing streak and ended in the black overnight. Positive momentum from the US-China talk and gains in US stocks might grow risk sentiment among investors. LME aluminium is likely to trade at US$1,960-2,000 per tonne today. 

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As on November 1, Thursday, LME aluminium cash (bid) price stood at US$ 1959 per tonne, LME official settlement price stands at US$ 1961 per tonne; 3-months bid price stands at US$ 1977 per tonne, 3-months offer price is US$ 1978 per tonne; Dec 19 bid price stands at US$ 2033 per tonne, and Dec 19 offer price stands at US$ 2038 per tonne. 

The LME aluminium opening stock dropped to 1047325 tonnes. Live Warrants totalled at 723900 tonnes, and Cancelled Warrants were 323425 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1959 per tonne.

SME and SHFE Aluminium Price Trend 

The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 1995 per tonne today from US$ 1983 per tonne on November 1.

The SHFE 1901 contract continued to diverge from the 60-day moving average as shorts weighed it to the lowest since mid-June, at RMB 13,835 per tonne in the afternoon yesterday. It finally settled at RMB 13,860 per tonne. The contract then fluctuated to end overnight trading down 0.1%. Among SHFE base metals, aluminium was the only one that closed in negative territory overnight.  The market is relaxed with positive development in talks between US President Donald Trump and Chinese President Xi Jinping. The contract is expected to trade at RMB 13,850-14,000 per tonne today with spot discounts at RMB 70-30 per tonne.

Tagged with:

Aluminium Price LME China Market

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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