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04 SEPTEMBER 2019 AL CIRCLE

Downturn continues for LME aluminium and the contract plunged further to US$ 1714.50 per tonne; SHFE remained firm

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar barely changed against a basket of currencies, underpinned by safe-haven demand amid worries about US-China trade tensions and a chaotic British exit from the European Union. 

LME aluminium is seeing one of the lowest periods in last three years. Three-month LME aluminium continued its weak trends as it slipped to a record low around US$1,736.5 per tonne, before it regained some losses and finished lower on the day at US$1,752 per tonne. With pressure from the five-day moving average, it is expected to hover between US$1,730-1,780 per tonne today.

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lme

As on September 3, Tuesday, LME aluminium cash (bid) price stood at US$ 1714 per tonne, LME official settlement price stands at US$ 1714.50 per tonne; 3-months bid price stands at US$ 1743 per tonne, 3-months offer price is US$ 1743.50 per tonne; Dec 20 bid price stands at US$ 1820 per tonne, and Dec 20 offer price stands at US$ 1825 per tonne.

The LME aluminium opening stock dropped to 913925 tonnes. Live Warrants totalled at 696325 tonnes, and Cancelled Warrants were 217600 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1747 per tonne.

SME and SHFE Aluminium Price Trend

The most traded SHFE 1910 contract gave back earlier gains to close the trading day 0.14% higher at RMB 14,310 per tonne on Tuesday, with open interest shrinking 14,890 lots to 284,378 lots. The October contract was propelled by longs overnight, which added their positions on domestic falling inventories. It is seen trading at RMB 14,250-14,400 per tonne today with spot premiums at RMB 20-40 per tonne.

News of capacity recovery and strong performance seen in some other metals sidelined longs, while improving consumption deterred shorts from making moves. SHFE aluminium is expected to remain firm and rangebound in the short term.

Tagged with:

LME Price Aluminium Inventory

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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