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19 JULY 2019 AL CIRCLE

Falling US dollar buoyed LME aluminium yesterday to a two month's high; SHFE followed upward trend

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar extended its losses against the euro, yen and other major currencies and the dollar index slid 0.54% and ended at 96.696. Base metals traded mostly higher. LME aluminium rose 0.2% and SHFE aluminium climbed 0.25%.

Three-month LME aluminium registered the sixth consecutive trading day of increase as it climbed to a high of US$1,857 per tonne overnight after the US dollar weakened, settling up 0.22% at US$1,851 per tonne. With the KDJ indicators moving upwards, it is expected to trade between US$1,800-1,860 per tonne today.

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LME

As on July 18, Thursday, LME aluminium cash (bid) price stood at US$ 1827 per tonne, LME official settlement price stands at US$ 1827.50 per tonne; 3-months bid price stands at US$ 1844 per tonne, 3-months offer price is US$ 1846 per tonne; Dec 20 bid price stands at US$ 1943 per tonne, and Dec 20 offer price stands at US$ 1948 per tonne.

The LME aluminium opening stock registered dropped yesterday to 980200 tonnes. Live Warrants totalled at 698250 tonnes, and Cancelled Warrants were 281950 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1845 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) dropped to US$ 2023 today from US$ 2012 per tonne on Thursday.  

red mud

A load-up of long positions boosted the most traded SHFE September contract during yesterday, recovering from earlier losses to end 0.11% weaker at RMB 13,870 per tonne. The most-active SHFE September contract eased from a high of RMB 13,930 per tonne and finished 0.25% higher on the day at RMB 13,895 per tonne overnight, with growth in the KDJ indicators slowed. Trades today may occur at RMB 13,800-13,950 per tonne. 

Weakening consumption and lower costs will weigh on SHFE aluminium in the short term, but the anticipation of a consumption recovery at the end of the third quarter will offer support. SMM data showed that social inventories of primary aluminium ingots little changed on week.

Tagged with:

LME Price Aluminium China Market

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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