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23 MAY 2019 AL CIRCLE

Falling LME aluminium pulled down its SHFE counterpart yesterday; both the contracts are likely to trade lower today

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index firmed near a one-month peak, hovering around 98, after the May Federal Open Market Committee (FOMC) meeting. Base metals declined across the board. SHFE aluminium fell 0.49% and LME aluminium dropped 0.7%.

Three months LME aluminium slipped to a low of US$1,776.5 per tonne and ended the trading day 0.7% lower at US$1,781 per tonne as most base metals decreased. Cash contract closed at US$ 1747 per tonne. Norsk Hydro’s Albras aluminium smelter will ramp up its output after restrictions were lifted, and this depressed confidence in longs. Today, Three months LME aluminium is expected to trade at US$1,780-1,800 per tonne.

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As on May 21, LME aluminium cash (bid) price stood at US$ 1746 per tonne, LME official settlement price stands at US$ 1747 per tonne; 3-months bid price stands at US$ 1781 per tonne, 3-months offer price is US$ 1781.50 per tonne; Dec 20 bid price stands at US$ 1898 per tonne, and Dec 20 offer price stands at US$ 1903 per tonne.  

The LME aluminium opening stock stood at 1222625 tonnes. Live Warrants totalled at 752100 tonnes, and Cancelled Warrants were 470525 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1792 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2040 per tonne today from US$ 2052 per tonne yesterday.  

Following a drop in LME aluminium, Shanghai longs liquidated more than 5,000 lots in afternoon trade, which pulled the most traded SHFE July contract to a low of RMB 14,120 per tonne. The contract ended the trading day 0.95% lower at RMB 14,125 per tonne yesterday. The contract is expected to remain weak and hover between RMB 14,050-14,200 per tonne today.

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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