LME aluminium dives as US dollar index edges up, Shanghai aluminium inches higher

LME aluminium comes down below US$1,900 per tonne as the US dollar index representing greenback's strength against a basket of six major currencies edges higher. The lightmetal contract closed at US$1,890 per tonne on Thursday, April 13, down 0.89 per cent from its previous close of US$1,907 per tonne on Wednesday, April 12. Financial markets in the US, UK and European countries will close on Friday and resume trading next Tuesday, April 18. Shanghai Metals Market (SMM) forecasts that LME aluminium will hover at US$1,890-1,900 per tonne on Friday, April 14.

As on April 13, LME official cash buyer price of aluminium stands at US$1,889.50 per tonne, cash seller & settlement price is US$1,890 per tonne, 3M buyer price is US$1,902 per tonne, 3M seller price is US$1,902.50 per tonne, Dec1 buyer price is US$1,943 per tonne, and Dec1 seller price is US$1948 per tonne. The current LME official Opening Stock of aluminium is estimated at 1759850 tonnes, total Live Warrants is 1099250 tonnes, and Cancelled Warrant is 660600 tonnes.

LME aluminium premiums remain unchanged at their previous levels across major global markets. As on April 12, LME Aluminium US Premium stands at US$215, LME Aluminium West-Europe Premium stands at US$95, LME Aluminium East-Asia Premium is US$105 and LME Aluminium South-East Asia Premium is US$15 (per tonne).

The benchmark aluminium price on Shanghai Metal Exchange (SME) has moved marginally higher from its previous stand. It is US$2,017 per tonne as on April 14, up 0.90 per cent from Thursday's benchmark price of US$1,999 per tonne.

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Aluminium futures contract traded on Shanghai Futures Exchange (SHFE) registered marginal increase on Thursday. SHFE 1706 aluminium started at RMB 13,960 per tonne and then closed at RMB 14,180 per tonne as positions increased to 407,398 lots and positions rose 24,900 to 282,878. SHFE 1706 aluminium is expected to move at RMB 14,000-14,250 per tonne on Friday, SMM says.

Spot aluminium in China's domestic market is projected to trade at discounts of RMB 120-80 per tonne on Friday.

According to the preliminary data from the General Administration of Customs, China's unwrought aluminium and aluminium semis exports were 410,000 tonnes in March, with YTD exports from January to March  at 1060,000 tonnes, down 1.6 per cent year-on-year.