Downtrend continues in LME aluminium; SHFE 1808 opens lower after the holiday

As the US dollar came off from highs, LME aluminium rebounded to a high of US$2,228.5 per tonne on Monday after it fell to a low of US$2,193.5 per tonne. Finally the contract closed the day at US$2220.50 per tonne. Shanghai Metals Market expects LME aluminium to trade range bound at lows today with a trading range of US$2,200-2,240 per tonne.   

As on June 18, LME aluminium cash (bid) price stands at US$ 2220per tonne, LME official settlement price stands at US$ 2220.50per tonne; 3-months bid price stands at US$ 2215 per tonne, 3-months offer price is US$ 2215.50 per tonne; Dec 19 bid price stands at US$ 2238 per tonne, and Dec 19 offer price stands at US$ 2243 per tonne.

The LME aluminium opening stock slightly dropped to 1139575 tonnes. Live Warrants totalled at 907750 tonnes, and Cancelled Warrants were 231825 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2194.12 per tonne.  

SME and SHFE Aluminium Price Trend

The SHFE 1808 contract traded weakly last Friday to close at RMB 14,410 per tonne, RMB 265 per tonne lower from Thursday as investors added their short positions. SMM projected the to trade at RMB 14,200-14,500 per tonne this week as domestic aluminium operating capacity would rise further while demand remains weak.  The Shanghai Futures Exchange was closed yesterday and the SHFE 1808 contract is expected to trade at RMB 14,200-14,400 per tonne today with spot discounts at RMB 100-60 per tonne.

As US-Sino trade tension grew, the appetite for risk shrank and suppressed the increase in the US dollar index on Monday. The index closed at 94.742 on Monday. Key factors to watch today include the Eurozone’s current account for April, US housing starts and building permits in May.