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20 DECEMBER 2016 AL CIRCLE

LME aluminium down amid weak trading, SHFE aluminium wanes as inventory keeps rising

EDITED BY : DIPANWITA GUPTA 3MINS READ

LME aluminium is back to where it was a fortnight back plummeting at US$1,717 per tonne on Monday, December 19. The contract slid with rising positions and tested the 60-day moving average. Shanghai Metals Market says, LME aluminium will move at the range of US$1,700-1,720 per tonne on Tuesday, December 20.

As on December 19, LME official CASH Buyer price of aluminium stands at US$1716.5 per tonne, CASH Seller & Settlement price is US$1717 per tonne, 3M Buyer price is US$1711 per tonne, and 3M Seller price is US$1712 per tonne. LME official Opening Stock of aluminium is estimated at 2117500 tonnes, total Live Warrants is 1448125 tonnes, and Cancelled Warrant is 664150 tonne.

The global metal exchange and LME Clear announced yesterday their 2017 fee schedules, reported Scrap Monster. Trading clearing fees including continuation of fee discounts for short-dated carries and position transfer caps will remain unchanged as were announced in August 2016. Refer LME and LME Clear announcement for 2017 fees news for further details.

News
In China, aluminium benchmark price on Shanghai Metal Exchange, as on December 20, is recorded at US$1,832 per tonne, down 0.75 per cent from previous day's price.

Social inventory is on the rise in China major markets, waning down SHFE 1702 aluminium. SHFE 1702 aluminium will test RMB 12,500/mt on Tuesday and will move at RMB 12,500-12,720/mt, says SMM.

Spot aluminium in China's domestic market should trade at premiums of RMB 80-120 per tonne on Tuesday, predicts SMM.

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Oil prices slumped by three per cent on Wednesday last week after the US Federal Reserve's decision to hike interest rates and after a jump in crude inventories renewed concerns that a supply glut was forming. Since then, base metals have been weighed on significantly. SMM says base metals will likely see some corrections on Tuesday but any rebound will be limited.

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EDITED BY : DIPANWITA GUPTA 3MINS READ

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