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11 MAY 2017 AL CIRCLE

LME aluminium drops further as oversupply concerns persist, SHFE aluminium edges up

EDITED BY : DIPANWITA GUPTA 2MINS READ

The recent downfall in LME aluminium prices enters its sixth day. The light metal traded globally has dropped by 2.4 per cent since it last hit US$1,916 per tonne on May 3.  On Wednesday, May 10, LME aluminium closed at US$1,870 per tonne, down 0.21 per cent from its previous close of US$1,874 per tonne on Tuesday, May 9. Shanghai Metals Market forecasts that LME aluminium prices will fluctuate within the range of US$1,850-1,880 per tonne on Thursday, May 11.

As on May 10, LME official cash buyer price of aluminium stands at US$1,869.50 per tonne, cash seller & settlement price is US$1,870 per tonne, 3M buyer price is US$1,874 per tonne, 3M seller price is US$1,875 per tonne, Dec1 buyer price is US$1,915 per tonne, and Dec1 seller price is US$1,920 per tonne. The current LME official Opening Stock of aluminium is estimated at 1570575 tonnes, total Live Warrants is 968475 tonnes, and Cancelled Warrant is 602100 tonnes.

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LME aluminium premiums, as on May 8, remain unchanged across major regions. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium US Premium is US$215, LME Aluminium West-Europe Premium is US$95, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).

The benchmark aluminium price at Shanghai Metal Exchange (SME) has inched higher from US$1,982 per tonne on Wednesday, May 10, to US$1,987 per tonne on Thursday, May 11.

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Aluminium futures contracts traded at the Shanghai Futures Exchange (SHFE) staged volatile movement during Wednesday’s night trading. The contract SHFE 1707 aluminium is likely to struggle around moving averages and move between RMB 13,750-14,000 per tonne on Thursday, May 11, SMM said.   

Spot aluminium in east China is projected to narrow to RMB 0-40 per tonne over SHFE 1705 aluminium on Thursday.

The market focus will be on US’s annual PPI in April, initial jobless claim from the week ending May 5, and UK’s March industrial production data, SMM suggests.  


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EDITED BY : DIPANWITA GUPTA 2MINS READ

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