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05 APRIL 2018 AL CIRCLE

LME aluminium dips much below US$ 2000 in the face of worldwide trade tensions; SHFE remains close today

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME continues downward trend as there is no strong fundamental in the international market. The inventories are high and the market is buzzing with trade restrictions and counter actions among countries.  After losing its position of US$2,000 per tonne on yesterday’s trading after seven days of consecutive decline, the LME aluminium contract finally closed much lower at US$ 1972 per tonne on April 4. It is likely to extend its downward trend in the light of growing trade tension.

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There is no clear indication of further stability in price. According to Metal Bulletin analyst Andy Farida, "With no sign that global on-exchange stock levels are declining or that there will be a toned-down approach from the US or China on fresh tariffs, LME aluminium is likely to remain under downside pressure.”

As on April 4, LME aluminium cash (bid) price stands at US$ 1971 per tonne, LME official settlement price stands at US$ 1972 per tonne; 3-months bid price stands at US$ 1989 per tonne, 3-months offer price is US$ 1990 per tonne; Dec 19 bid price stands at US$ 2050 per tonne, and Dec 19 offer price is US$ 2055 per tonne. 

The LME aluminium opening stock has dropped to 1270350 tonnes. Live Warrants totalled at 1008725 tonnes, and Cancelled Warrants were 261625 tonne.

LME aluminium 3-months ABR price is hovering low at US$ 1989 per tonne. 

SME and SHFE Aluminium Price Trend

Shanghai Futures Exchange (ShFE) aluminium stocks have fallen for the first time last week in more than nine months, giving the market faint hope of dwindling record aluminium inventories in China. The Shanghai Futures Exchange is closed on Thursday for China's national Tomb Sweeping Day holiday. During yesterday’s trading, SHFE aluminium tumbled to a low of RMB 13,935 per tonne. It rebounded to the RMB 14,000 per tonne level as shorts exited the market at lows, and closed at RMB 14,010 per tonne.It remains to be seen how the market opens tomorrow in the face of confusion and concerns surrounding international trade. 

Tagged with:

LME Price Inventory Aluminium

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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