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12 MARCH 2019 AL CIRCLE

Falling US dollar lifts LME aluminium overnight after a slow start on Monday; SHFE to hover in a broad range

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar slipped into negative territory, following an anticipated retail sales report that drew little reaction from the greenback. Base metals closed mixed and aluminium fell 0.51%. SHFE aluminium climbed.

LME aluminium closed lower on Monday at US$1830 per tonne. After that a weaker US dollar lifted it to a high of US$1,876 per tonne last night. However, the contract dipped to US$1,845 per tonne, the lowest since February 14 and finally closed lower on the day at US$1,855.5 per tonne, with open interests down 4,251 lots to 663,000 lots. With resistance at the 20-day moving average, LME aluminium is likely to trade at US$1,800-1,890 per tonne today.

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As on March 11, LME aluminium cash (bid) price stood at US$ 1829 per tonne, LME official settlement price stands at US$ 1830 per tonne; 3-months bid price stands at US$ 1857.50 per tonne, 3-months offer price is US$ 1858 per tonne; Dec 20 bid price stands at US$ 1998 per tonne, and Dec 20 offer price stands at US$ 2003 per tonne.  

The LME aluminium opening stock dropped to 1213125 tonnes. Live Warrants totalled at 653825 tonnes, and Cancelled Warrants were 559300 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1871 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange slightly increased to US$ 2009 per tonne today from US$ 2008 per tonne on March 11. 

The SHFE 1905 contract hovered in a broad range in the morning, with an intraday low of RMB13,460 per tonne in early trades yesterday. A decline of some 9,000 mt in social inventories of primary aluminium over the weekend, as well as recovered consumption in the east, pulled the contract to a high of RMB 13,535 per tonne near closing. It ended at RMB 13,525 per tonne yesterday. The SHFE 1905 contract tested pressure at the 40-day moving average overnight as longs entered at a low of RMB13,460 per tonne. It is expected to trade at RMB 13,350-13,800 per tonne today, with spot discounts at RMB 50-10 per tonne. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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