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09 APRIL 2018 AL CIRCLE

LME aluminium corrects down to US$1967 per tonne after gaining 2.2% on Friday; SHFE reopens with a gain

EDITED BY : BEETHIKA BISWAS 2MINS READ

After registering a record low in eight months, LME aluminium touched a high at $2,063 per tonne last Friday. After the announcement that the U.S. sanctioned and froze Oleg Deripaska's assets subject to US jurisdiction, aluminium prices on the London Metal Exchange gained by 2.2% at the close on Friday April 6. However, the initial upturn started correcting and the contract finally closed the trading day at US$1967 on Friday, April 6.

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London aluminium rallied two per cent on Monday’s trading and is expected to rise further.  SMM expects LME aluminium to trade between $2,060-2,100 per tonne today while traders will be on a buying spree due to uncertainties regarding Rusal aluminium.

As on April 6, LME aluminium cash (bid) price stands at US$ 1966 per tonne, LME official settlement price stands at US$ 1967 per tonne; 3-months bid price stands at US$ 1987 per tonne, 3-months offer price is US$ 1988 per tonne; Dec 19 bid price stands at US$ 2040 per tonne, and Dec 19 offer price stands at US$ 2045 per tonne. 

The LME aluminium opening stock has dropped to 1260900 tonnes. Live Warrants totalled at 999125 tonnes, and Cancelled Warrants were 261775 tonne.

LME aluminium 3-months ABR price is hovering low at US$ 2000 per tonne. 

SME and SHFE Aluminium Price Trend

Shanghai Futures Exchange where markets reopened after a four-day break, aluminium was up nearly 1 per cent.  Shanghai Metals Exchange was closed on Thursday and Friday for China's national Tomb Sweeping Day holiday. The benchmark aluminium price on Shanghai Metal Exchange slightly increased from US$ 2222 per tonne on April 4 to US$ 2235 per tonne on April 9. SMM expected SHFE 1806 contract to trade at RMB 14,180-14,380 per tonne. Spot discounts are seen between RMB 70-30 per tonne. Following is the Shanghai Futures Exchange aluminium price movement on April 9, as updated by shfe.com.  

The US dollar is expected to hover around 90 with downward room today, and both LME and SHFE metals are seen trading rangebound today. Sanctions against Rusal will continue to create tensions in the market. A Hong Kong broker Argonaut said in a report that "Market concerns have that the sanction against Rusal and its own technical default assessment may lead to supply shortage in both aluminium and alumina."

Tagged with:

Price LME China SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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