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13 JUNE 2019 AL CIRCLE

Improved market sentiment pulled up three months LME aluminium from the previous day; SHFE to trade rangebound

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index rose on Wednesday, even as government data showed moderate US inflation in May. Most LME base metals closed lower on Wednesday but aluminium advanced 0.5%. SHFE base metals performed similarly overnight and aluminium inched up.

Improved market sentiment bolstered three-month LME aluminium on Wednesday closing 0.48% up at US$1,786.5 per tonne. LME cash contract closed slightly lower at US$ 1753.50 per tonne at the day’s closing. LME aluminium is expected to trade between US$1,750-1,820 per tonne today.

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As on June 12, Wednesday, LME aluminium cash (bid) price stood at US$ 1753 per tonne, LME official settlement price stands at US$ 1753.50 per tonne; 3-months bid price stands at US$ 1785 per tonne, 3-months offer price is US$ 1786 per tonne; Dec 20 bid price stands at US$ 1905 per tonne, and Dec 20 offer price stands at US$ 1910 per tonne.

The LME aluminium opening stock dropped to 1085475 tonnes. Live Warrants totalled at 708775 tonnes, and Cancelled Warrants were 376700 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1777 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) dropped slightly today to US$ 2018 per tonne from US$ 2026 per tonne on Wednesday. 

The most-traded SHFE August contract lost more than half the gains from the previous day as expanding shorts weighed it to a low of RMB 13,915 per tonne, before it ended 0.14% lower on the day at RMB 13,930 per tonne yesterday. As longs aggressively loaded up their positions, the August contract recovered from a lower open to close a tad higher at RMB13,985 per tonne overnight. SHFE aluminium recently hovered around RMB 14,000 per tonne level and is expected to trade rangebound between RMB 13,900-14,200 per tonne today. Spot premiums are seen at RMB10-30 per tonne over the June contract.  Market focus returned to fundamentals, which remained weak with the upcoming slow season.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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