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14 AUGUST 2018 AL CIRCLE

LME aluminium continues rangebound pattern struggling to stay afloat; SHFE under pressure from rising US dollar

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index notched a fresh 14-month high at 96.52 before it closed at 96.27 overnight as Turkey’s economic woes continued.

LME aluminium hovered within a range of US$25 for most of the day and closed the day’s trading at US$ 2052 per tonne yesterday August 13. The metal rebounded from a low of US$2,070 per tonne and closed at US$2,080 per tonne on Monday night. Shanghai Metals Market expects it to continue the range bound pattern today with a trading range of US$2,060-2,100 per tonne.

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As on August 13, LME aluminium cash (bid) price stands at US$ 2051per tonne, LME official settlement price stands at US$ 2052 per tonne; 3-months bid price stands at US$ 2076 per tonne, 3-months offer price is US$ 2077 per tonne; Dec 19 bid price stands at US$ 2113 per tonne, and Dec 19 offer price stands at US$ 2118 per tonne.

The LME aluminium opening stock dropped to 1140900 tonnes. Live Warrants totalled at 817975 tonnes, and Cancelled Warrants were 322925 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2087 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2111 per tonne on August 14, from US$ 2108 per tonne on August 13.

As the US dollar strengthened, the SHFE 1810 contract traded under pressure and dipped to a low of RMB 14,640 per tonne yesterday morning and stood above the five-day moving average in the afternoon. The contract closed at RMB 14,690 per tonne, up RMB 15 per tonne from last Friday. The contract lost all its early gains from a high of RMB 14,740 per tonne to a low of RMB 14,635 per tonne before it recovered some losses and closed at RMB 14,660 per tonne overnight. We expect the contract to trade at RMB 14,600-14,800 per tonne today. Spot discounts are seen at RMB 40-0 per tonne.

Key things to watch today include China’s industrial production, retail sales and fixed asset investment in July, eurozone’s gross domestic product (GDP) data in the second quarter and Germany’s GDP data in the second quarter, consumer price inflation in July and ZEW economic sentiment index in August as well as US import prices in July.

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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