15 MARCH 2017AlCircle.com
LME aluminium drops further, SHFE aluminium to test support at 60-day moving average
Edited by : Beethika Biswas
3 min read
<p>After experiencing a bullish run since the beginning of 2017, LME aluminium dropped below the 40-day moving average for the first time, indicating bearish trends. After dropping down to USD 1,882 per tonne on Monday, March 13, LME aluminium closed at $ 1,851 per tonne on Tuesday, March 14 registering 1.6% drop from last closing price. As seen by SMM, LME aluminium is expected to trade at USD 1,840-1,870/mt on Wednesday.</p>
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<p>As on March 14, LME official cash buyer price of aluminium stands at US$1850 per tonne, cash seller & settlement price is US$ 1851 per tonne, 3M buyer price is US$ 1862 per tonne, 3M seller price is US$ 1862.50 per tonne, Dec1 buyer price is US$ 1902 per tonne, and Dec1 seller price is US$ 1907 per tonne. The current LME official Opening Stock of aluminium is estimated at 2033000 tonnes, total Live Warrants at 1293100 tonnes, and Cancelled Warrant at 739900 tonnes.</p>
<p>As on March 13, 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$15. (per tonne)</p>
<p>According to an SMM report, in China’s domestic market, downstream demand is improving, so shorts mainly take short-term operational plan. But, high inventories and falling short of policy expectations also restrict bullish sentiment, with shorts in the upper hand, undermining its support at the 60-day moving average.</p>
<p>The benchmark price of aluminium on Shanghai Metal Exchange (SME) has dropped further from US$ 1,962 per tonne on Tuesday, March 14 to stand at US$ 1,945 per tonne on Wednesday, March 15. Spot aluminium in China’s domestic market is estimated to trade at discounts of RMB 90-50/mt on Tuesday.</p>
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<p>On Tuesday, SHFE 1705 aluminum started at RMB 13,820/mt and then declined to RMB 13,760/mt. SHFE 1705 aluminum ended at RMB 13,655/mt. After testing support at the 60-day moving average on Tuesday’s night trading, SHFE 1705 aluminum is estimated to fluctuate between RMB 13,550-13,770/mt on Wednesday.</p>
<p>According to an SMM analysis, US crude oil inventories last week, February retail sales and New York Fed’s manufacturing index in March, which will be released today, will influence all base metals. Chinese Premier Li Keqiang’s statement at a press conference after the NPC & CPPCC and Netherlands’ general election will be also a focus of markets. All base metals including aluminium are expected to remain range-bound today.</p>
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