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15 JUNE 2018 AL CIRCLE

LME aluminium drops slightly on yesterday's closing and hovering at the 20-day moving average, SHFE on a downtrend

EDITED BY : BEETHIKA BISWAS 2MINS READ

Base metals fell with the rising US dollar and LME aluminium closed slightly lower at US$ 2277.50 per tonne on Thursday 14 June from US$ 2278 per tonne on Wednesday June 13.  Over the night trading, LME aluminium rebounded back to around the 20-day moving average after being dragged down by its SHFE counterpart to a low of US$2,252 per tonne. Shanghai Metals Market sees it trading at US$2,240-2,270 per tonne with limited upward room given a stronger US dollar.

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As on June 14, LME aluminium cash (bid) price stands at US$ 2277per tonne, LME official settlement price stands at US$ 2277.50 per tonne; 3-months bid price stands at US$ 2266 per tonne, 3-months offer price is US$ 2266.50 per tonne; Dec 19 bid price stands at US$ 2275 per tonne, and Dec 19 offer price stands at US$ 2280 per tonne.

The LME aluminium opening stock slightly dropped to 1148000 tonnes. Live Warrants totalled at 929650 tonnes, and Cancelled Warrants were 218350 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2266.98 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2237 per tonne on June 14 from US$ 2277 per tonne on June 13. 

The SHFE 1808 contract dipped to a low of RMB 14,610 per tonne with pressure from shorts. The decline was already expected.  The SHFE 1808 contract tumbled to a further low of RMB 14,490 per tonne last night with pressure from shorts. It is expected to trade at RMB 14,500-14,700 per tonne with spot offers at a discount of RMB 20 per tonne to a premium of RMB 20 per tonne. SMM expects the contract to drop further in the short run on weak fundamentals and declining alumina prices.  

The US dollar index soared and registered a fresh high in June overnight due to better-than-expected retail sales growth in May and the European Central Bank’s (ECB) dovish decision to hold off on rate hikes. Key factors to watch today include the eurozone consumer price index (CPI) in May, trade balance in April, the US industrial production in May, and consumer confidence in June surveyed by the University of Michigan.

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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