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19 JULY 2018 AL CIRCLE

LME aluminium dived to a low of US$2,040 per tonne; SHFE to remain rangebound

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index inched down from a three-week high but still stood above the 95 level and closed at 95.09. Base metals mostly consolidated at low levels.

As longs exited at highs, LME aluminium dived to a low of US$2,022 per tonne during the European trading session after touching US$2,045 per tonne. The contract closed Wednesday’s trading at US$2,040 per tonne, lower than the last closing of US$ 2110 per tonne. Open interests dipped 41,670 lots to 615,804 lots, while inventory rose 23,800 tonnes to close to 1.2 million tonnes. Shanghai Metals Market expects it to consolidate at US$2,020-2,050 per tonne today.

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As on July 18, LME aluminium cash (bid) price stands at US$ 2038per tonne, LME official settlement price stands at US$ 2040 per tonne; 3-months bid price stands at US$ 2023 per tonne, 3-months offer price is US$ 2025 per tonne; Dec 19 bid price stands at US$ 2087 per tonne, and Dec 19 offer price stands at US$ 2092 per tonne.

The LME aluminium opening stock increased to 1198875 tonnes. Live Warrants totalled at 1031900 tonnes, and Cancelled Warrants were 166975 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2026.12per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange stands at US$ 2075 per tonne on July 19, almost flat from US$ 2074 per tonne on July 18.

With support at RMB14,000 per tonne and the five-day moving average, the SHFE1809 contract rebounded slightly in the morning after it tumbled to a session-low of RMB14,010 per tonne yesterday. As the US dollar extended its gains, the contract slipped in the afternoon and closed below its daily moving average. The SHFE 1809 contract was pushed up today morning to a high of RMB14,150 per tonne. The SHFE/LME price ratio gained further to 6.92. The contract is seen trading at RMB 14,050-14,180 per tonne today with spot discount at RMB 90-50 per tonne. 

There has been no further development towards solving Rusal sanctions and alumina prices rebounded again. SMM expects the contract to remain rangebound in the short term with strong support at the RMB14,000 per tonne level.

The US jobless claims for the week ended July 14 will be one of the key factors to watch today. 

 

 

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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