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14 MARCH 2017 AL CIRCLE

LME aluminium drops after a short recovery, SHFE aluminium to follow downward trend

EDITED BY : BEETHIKA BISWAS 2MINS READ

After a quick rise to USD 1,885 per tonne on Friday March 10, LME aluminium closed slightly lower at $ 1,882 per tonne on Monday March 13. As seen by SMM, LME aluminium will test support at the 5-day moving average on Tuesday and will trade at USD 1,870-1,895/mt.

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As on March 13, LME official cash buyer price of aluminium stands at US$1881 per tonne, cash seller & settlement price is US$ 1882 per tonne, 3M buyer price is US$ 1894 per tonne, 3M seller price is US$ 1894.50 per tonne, Dec1 buyer price is US$ 1935 per tonne, and Dec1 seller price is US$ 1940 per tonne. The current LME official Opening Stock of aluminium is estimated at 2054425 tonnes, total Live Warrants at 1293100 tonnes, and Cancelled Warrant at 761325 tonnes.

As on March 10, LME Aluminium US Premium stands at US$ 215, LME Aluminium West-Europe Premium is US$ 95, LME Aluminium East-Asia Premium is US$100 and LME Aluminium South-East Asia Premium is US$15. (per tonne)

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All base metals in the China market, including aluminium tried to move higher, but finally fell back from highs for most, a sign of big resistance at highs. The benchmark price of aluminium on Shanghai Metal Exchange (SME) has dropped a little lower from US$ 1,964 per tonne on Monday, March 13 to stand at US$ 1,962 per tonne on Tuesday, March 14.

According to SMM, 1704 aluminium traded on Shanghai Futures Exchange will continue its downward slope and move between RMB 13,680-13,950/mt on Tuesday. Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 100-60/mt on Tuesday.

According to an SMM analysis, China’s industrial, consumption and investment data in February, US annualized February PPI and ZEW economic climate index for Germany and Europe in March which will be released today will influence base metals. Base metals surged at first but then fell overnight. Pressure from moving average will constrain further price gains of base metals. If the OPEC monthly oil report due for release today shows output increase, oil prices will be greatly weighed down, and vice versa.

Tagged with:

Aluminium Price LME SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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