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20 NOVEMBER 2017 AL CIRCLE

LME aluminium drops below US$2,100/t again amid weakening downstream demand

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium failed to sustain last week’s gain as buying slowed down in the downstream verticals. The light metal contract which had inched higher to US$2,106 per tonne on Thursday, November 16, slid back to US$2,077 per tonne after night trading on Friday, November 17. Current price trend suggests that LME aluminium will keep volatile and continue trading within a narrow range in the short term.  

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As on November 17, LME official cash buyer aluminium price (Bid Price) stands at US$2,076.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,077 per tonne, 3M Bid Price is US$2,095 per tonne, 3M Offer Price is US$2,095.50 per tonne, Dec1 Bid Price is US$2,140 per tonne, and Dec1 Offer Price is US$2,145 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1157800 tonnes, total Live Warrants is 910025 tonnes, and Cancelled Warrant is 247775 tonnes.                      

LME aluminium spot price was at a US$17.5 per tonne discount than three month aluminium on November 17.         

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has dropped from US$2,298 per tonne on November 17, to US$2,272 per tonne on November 20. 

In China domestic market, aluminium price has been dropping this month. Hedging stock holders are offering as per premium of futures, while the middleman and downstream enterprises are waiting and watching. Total transaction of the market participants appears to be pessimistic, Shanghai Metals Market observed.

On Shanghai Futures Exchange, SHFE Al1801 fell sharply under the support level. It is currently under RMB 15,200 per tonne. SMM predicts that the contract may decline to RMB 15,100 per tonne. Overall SHFE Aluminium is expected to move volatile between RMB 15,000-15,500 per tonne range in the near term.

Tagged with:

Price LME Inventory

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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