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08 MARCH 2018 AL CIRCLE

LME aluminium edges down further amid trade tensions; SHFE follows suits with bearish trend

EDITED BY : BEETHIKA BISWAS 2MINS READ

Concerns that the U.S. could slap down import tariffs on aluminium as well as steel have dragged those metals down. LME aluminium edged down during yesterday’s trading and overnight and is set to test support at $2,100/mt today. LME aluminium is struggling under increasing downward pressure and closed down at US$ 2112.50 per tonne on March 7. Shanghai Metals Market expects the contract to trade at US$2,085-2,120 per tonne.  

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As on March 7 LME aluminium cash (bid) price stands at US$ 2112 per tonne, LME official settlement price stands at US$ 2112.50 per tonne; 3-months bid price stands at US$ 2131.50per tonne, 3-months offer price is US$ 2132 per tonne; Dec 19 bid price stands at US$ 2177 per tonne, and Dec 19 offer price is US$ 2182 per tonne.

The LME aluminium opening stock has dropped to 1319300 tonnes, Live Warrants totalled at 1080825 tonnes, and Cancelled Warrants were 238475 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2139.13 per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has dropped from US$2225 per tonne on March 7 to US$ 2201 per tonne on March 8, amidst trade tensions between China and the U.S., the largest aluminium market.

SHFE aluminium touched a low at RMB 14,200 per tonne yesterday as investors poured in short positions following a drop of alumina price by Aluminum Corp of China (Chalco). SHFE contract is expected to trade at RMB 14,100-14,300 per tonne today. Spot prices are expected at a discount of RMB 150-110 per tonne.

Slower downstream consumption due to winter cuts, Chinese New Year holidays, bad weather as well as the Chinese People’s Political Consultative Conference (CPPCC) and the Chinese National People’s Congress (CNPC) added to a passive market. SMM expects the demand to bounce back in the second quarter.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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