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26 JUNE 2018 AL CIRCLE

LME aluminium closed higher on Monday; SHFE to remain low on falling alumina and prebaked anode prices

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME aluminium rebounded with the dipping of US dollar and closed Monday’s trading at US$ 2172 per tonne. LME aluminium was dragged down by its SHFE counterpart to close at a low of US$2,149.5 per tonne last night. It is expected to recover some losses and move close to the five-day moving average during the day. Shanghai Metals Market sees the trading range at $2,140-2,165 per tonne.

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As on June 25, LME aluminium cash (bid) price stands at US$ 2171 per tonne, LME official settlement price stands at US$ 2172 per tonne; 3-months bid price stands at US$ 2165 per tonne, 3-months offer price is US$ 2167 per tonne; Dec 19 bid price stands at US$ 2183 per tonne, and Dec 19 offer price stands at US$ 2188 per tonne.

The LME aluminium opening stock slightly dropped to 123700 tonnes. Live Warrants totalled at 889000 tonnes, and Cancelled Warrants were 234700 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2168.06per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2132 per tonne on June 26 from US$ 2165 per tonne on June 25.

SHFE aluminium fell for the most part during yesterday as consumption weakens and inventory draw slows. On the cost front, SMM sees possibility of full costs hitting RMB 13,800 per tonne as falling alumina and prebaked anode prices have yet to see signs of stability. The SHFE 1808 contract traded below all moving averages today morning with pressure amid slack season. It touched a low of RMB 14,020 per tonne overnight as investors added their shorts. The contract is expected to face resistance at five-day moving average today. Trading range is set at RMB 14,000-14,200 per tonne with spot discount at RMB 60-20 per tonne. Aluminium prices are expected to remain weak in the short term as bearish factors dominate the market.

The US dollar index dipped overnight and closed at 94.3. News reports suggested that companies with 25% or more Chinese ownership may be banned from buying US businesses with “industrially significant technology”.

Key factor to watch today is US consumer confidence in June surveyed by the Conference Board.

Tagged with:

Price LME Alumina price SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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