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05 JANUARY 2018 AL CIRCLE

LME aluminium drops on rising dollar; SHFE shows restraint after continuous downtrend

EDITED BY : BEETHIKA BISWAS 2MINS READ

The dollar edged up on Thursday after upbeat U.S. data and supportive minutes from the Federal Reserve’s latest policy meeting helped it shake off recent weakness. After registering some gains at the start of the New Year, LME aluminium is on a downward trend driven by dollar’s uptrend and higher Chinese inventory.

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The light metal contract fell further from US$2,241 per tonne on January 3, to US$2,230 per tonne on January 4, Thursday. According to Shanghai Metals Market, LME aluminium is on a downward trend and is expected to trade between the five-day and 10-day moving averages today at $2,215-2,255/t. The momentum in LME copper may also affect aluminium price movement.

As on January 4, LME official cash buyer aluminium price (Bid Price) stands at US$2,228 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,230 per tonne, 3M Bid Price is US$2,243 per tonne, 3M Offer Price is US$2,245 per tonne, Dec1 Bid Price is US$2,320 per tonne, and Dec1 Offer Price is US$2,325 per tonne. LME aluminium opening stock stands at 1101325 tonnes, total Live Warrants is 851325 tonnes and Cancelled Warrants 250000 tonnes.

The Asian reference price for LME aluminium (3-months ABR) is US$ 2227.97 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has increased from US$2,255 per tonne on January 4 to US$2,281 per tonne on January 4. On Shanghai Futures Exchange, SHFE aluminium price movement on January 4, as updated by Shanghai Metals Market, was as follows:

SHFE aluminium is expected to trade just below the five-day moving average at RMB 15,050-15,220 per tonne, with spot discount at RMB 300-260 per tonne.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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