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20 MAY 2019 AL CIRCLE

LME aluminium continued the weak trend during Friday night after lifting of tariffs on Canada and Mexico; SHFE remains rangebound

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index on Friday advanced to its highest level in two weeks near 98 as the heavy selling pressure surrounding the major European currencies allowed investors to return to the relatively safer greenback. Base metals ended lower across the board as LME aluminium lost over 1%. SHFE aluminium dipped 0.52%.

LME aluminium extended the weak trend from the Asian trading session, as it slipped to a low of US$1,826.5 per tonne and ended the trading day 1.27% lower at US$1,831.5 per tonne. Prices may face pressure as the US reached a deal to lift steel and aluminium tariffs on Canada and Mexico. It is expected to trade at US$1,830-1,850 per tonne today.

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As on May 17, LME aluminium cash (bid) price stood at US$ 1804.50 per tonne, LME official settlement price stands at US$ 1805 per tonne; 3-months bid price stands at US$ 1834 per tonne, 3-months offer price is US$ 1835 per tonne; Dec 20 bid price stands at US$ 1945 per tonne, and Dec 20 offer price stands at US$ 1950 per tonne.  

The LME aluminium opening stock stood at 1239975 tonnes. Live Warrants totalled at 757725 tonnes, and Cancelled Warrants were 482250 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1848.13 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has dropped to US$ 2065 per tonne. 

The loading up of short positions forced the most traded SHFE July contract to give up overnight gains to close the trading day 0.28% lower at RMB 14,310 per tonne. Despite today’s pullback, rising alumina prices and declining inventories of primary aluminium will remain supportive of SHFE aluminium. The contract is expected to trade between  RMB 14,250-14,350 per tonne today. Spot offers are set flat to a premium of RMB 20 per tonne today. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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