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28 MAY 2019 AL CIRCLE

Capacity cut news in Henan supported SHFE aluminium yesterday; LME remained closed on Monday

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar recovered some ground on Monday, as market holidays in Britain and the US muted trades. Most SHFE base metals traded higher overnight but aluminium dipped close to 0.1%. LME remained closed yesterday.

As on May 21, Friday, LME aluminium cash (bid) price stood at US$ 1761 per tonne, LME official settlement price stands at US$ 1761.50 per tonne; 3-months bid price stands at US$ 1793 per tonne, 3-months offer price is US$ 1795 per tonne; Dec 20 bid price stands at US$ 1913 per tonne, and Dec 20 offer price stands at US$ 1918 per tonne.

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The LME aluminium opening stock stood at 1208900 tonnes. Live Warrants totalled at 741575 tonnes, and Cancelled Warrants were 467325 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2072 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2069 per tonne today from US$ 2072 per tonne on Monday.  

The most-traded SHFE July contract rose for the third consecutive trading day yesterday as longs entered after news that Shenhuo Group’s primary aluminium plant in Henan province will suspend its full capacity of 250,000 tonnes after a fire on Sunday evening. Brisk demand lowered stocks of primary aluminium across social warehouses and also bolstered prices. The contract ended 0.9% higher on the day at RMB 14,310 per tonne. 

After a loading up of short positions dragged the most active SHFE July contract lower, the contract traded rangebound to finish overnight session 0.07% weaker at RMB 14,275 per tonne. The contract is expected to trade rangebound between RMB 14,250-14,350 per tonne today as the market has priced in the earlier-than-anticipated shutdown of Shenhuo’s plant in Yongcheng. Spot premiums are seen up to RMB 40 per tonne.

 

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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