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12 JUNE 2017 AL CIRCLE

LME aluminium drops on sluggish overseas demand, Chalco cuts China aluminium prices

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium just managed to stay on the higher side of US$1,900 per tonne last week. The light metal traded globally closed at US$1,901.50 per tonne on Friday, June 9, marginally down from US$1,902.50 per tonne on June 8. Shanghai Metals Market (SMM) analysis suggests that aluminium prices on LME will decline further this week dropping to US$1,870-1,920 per tonne.

Aluminium demand in the overseas market is softening due to cyclical dynamics. This is likely to put a downward pressure on the LME aluminium prices.

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News

As on June 9, LME official cash buyer aluminium price stands at US$1,901.50 per tonne, cash seller & settlement aluminium price is US$1,901 per tonne, 3M buyer price is US$1,902 per tonne, 3M seller price is US$1,902.50 per tonne, Dec1 buyer price is US$1,933 per tonne, and Dec1 seller price is US$1,938 per tonne. The current LME official Opening Stock of aluminium is estimated at 1456350 tonnes, total Live Warrants is 1034650 tonnes, and Cancelled Warrant is 421700 tonnes.

LME aluminium premiums, as on June 8, remain fairly unchanged at their last recorded levels. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium South-East Asia Premium remains unchanged at US$15, LME Aluminium US Premium has dropped to US$200, and LME Aluminium West-Europe Premium is down at US$85 (per tonne).

Some Japanese aluminium buyers have agreed to set aluminium premiums at US$119 per tonne for third quarter shipments, down 7 per cent from US$128 per tonne in second quarter.

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The benchmark aluminium price at Shanghai Metal Exchange (SME) stands at US$2,003 per tonne on Monday, June 12, down from from US$2,005 per tonne on Friday, June 9. 

At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1708 aluminium fell sharply due to short selling last Friday. SMM says that the contract will further drop to RMB 13,750-13,900 per tonne this week on growing aluminium supply.

Spot aluminium in east China market is expected to trade at discounts of RMB 30-70 per tonne over SHFE 1706 aluminium contract on Monday, June 12, SMM said.

China Aluminum International Trading Co. (Chalco Trading) cut aluminium pries it offered in major market today. The new prices are as follows:

Unit: RMB per tonne

News

The market focus will be on PBOC market liquidity update, US rate hike, and MPA in China and monthly tax payment data, due for release today. 

Tagged with:

Aluminium Price China SMM LME

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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