LME aluminium closed lower at US$ 1837/t; SHFE lacks continued upward momentum

The US dollar rebounded from a nearly three-month low, as investors focused on the risk of a eurozone recession after data showed more signs of slowing in the region. Weakness in the euro supported the dollar, which rose 0.21% against a basket of currencies to 95.88. Base metals ended mixed last night. LME aluminium lost over 1% and SHFE aluminium dipped 0.26%.

LME aluminium contract closed Tuesday’s trading at US$ 1837 per tonne. It is likely to remain its rangebound trend and hover around US$1,850-1,875 per tonne today. 

Reuters reported aluminium prices fell on Tuesday as bearish speculators kept up selling pressure, while other base metals were lacklustre ahead of the conclusion of U.S.-China trade talks. Ross Strachan, senior commodities economist at Capital Economics in London said: “I’ve been pretty gloomy on the aluminium market for some time and I expect more downside in coming months.”  

As on January 8, LME aluminium cash (bid) price stood at US$ 18366 per tonne, LME official settlement price stands at US$ 1837 per tonne; 3-months bid price stands at US$ 1858 per tonne, 3-months offer price is US$ 1859 per tonne; Dec 19 bid price stands at US$ 2015 per tonne, and Dec 19 offer price stands at US$ 2020 per tonne.  

The LME aluminium opening stock increased to 1283500 tonnes. Live Warrants totalled at 1043850 tonnes, and Cancelled Warrants were 239650 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1863.50 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 1945 per tonne today from US$ 1941 per tonne on January 8.

The SHFE 1902 contract lacks continued upward momentum, though it climbed up after opening overnight, to a high of RMB13,420 per tonne. Shanghai Metals Market expects the contract to trade at RMB13,350-13,460 per tonne today. Spot discounts are set at RMB50-10 per tonne.