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25 JANUARY 2019 AL CIRCLE

LME aluminium dips to US$ 1851 per tonne on strengthening US dollar; SHFE up on capacity cut expectations

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar strengthened against the euro after European Central Bank President Mario Draghi warned on downbeat economic growth. Base metals ended mixed. LME aluminium fell 0.55% and SHFE aluminium edged down. 

LME aluminium closed Thursday’s trading lower at US$ 1851 per tonne. Then the contract extended its rangebound trend overnight as it rebounded to close at US$1,885 per tonne after fell below the five-day moving average. Shanghai Metals Market expects the LME aluminium contract to trade at US$1870-1,900 per tonne today.

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As on January 24, LME aluminium cash (bid) price stood at US$ 1850 per tonne, LME official settlement price stands at US$ 1851per tonne; 3-months bid price stands at US$ 1870 per tonne, 3-months offer price is US$ 1871 per tonne; Dec 19 bid price stands at US$ 2005 per tonne, and Dec 19 offer price stands at US$ 2010 per tonne.  

The LME aluminium opening stock stood at 1301350 tonnes. Live Warrants totalled at 848650 tonnes, and Cancelled Warrants were 452700 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1895 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange remains unchanged today at US$ 1992 per tonne from January 24.

The SHFE 1903 contract slipped to RMB 13,525 per tonne in early afternoon trades yesterday. As shorts cut their bets, the contract recovered some losses to close at RMB 13,550 per tonne, up 0.5% on the day. The contract then found support at the five-day moving average, and jumped to a high of RMB 13,565 per tonne at night, pulled by expectations of further capacity cuts and improved consumption. Lower costs will limit its upward momentum. We see the contract trading at RMB 13,450-13,600 per tonne with spot discounts set at RMB 70-30 per tonne. 

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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