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29 JULY 2019 AL CIRCLE

LME aluminium ended lower on Friday after a flat run over the week; a rangebound pattern likely for LME and SHFE this week

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar climbed to two-month highs on Friday after data showed that the world’s largest economy slowed less than expected in the second quarter. The US dollar index rose 0.22% to 97.996. LME base metals closed lower on Friday. LME aluminium tumbled 1.1% and SHFE aluminium lost 0.2%.

Three-month LME aluminium dropped to a three-week low of US$1,794 per tonne on Friday before it recovered some ground to end 1.09% lower at US$1,806.5 per  tonne. It is expected to trade between US$1,780-1,840 per tonne today.

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LME

As on July 26, Friday, LME aluminium cash (bid) price stood at US$ 1776 per tonne, LME official settlement price stands at US$ 1778 per tonne; 3-months bid price stands at US$ 1803.50 per tonne, 3-months offer price is US$ 1804.50 per tonne; Dec 20 bid price stands at US$ 1908 per tonne, and Dec 20 offer price stands at US$ 1913 per tonne.

The LME aluminium opening stock increased to 1021325 tonnes. Live Warrants totalled at 764625 tonnes, and Cancelled Warrants were 256700 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1818 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) dropped to US$ 2015 per tonne today from US$ 2022 per tonne on Friday.

RED MUD

The most-liquid SHFE September contract retreated after climbing to a high of RMB 13,950 per tonne, and closed at an intraday low of RMB 13,875 per tonne on Friday, still up 0.22% on the day. The unwinding of long positions led to a lower open in the most traded SHFE September contract on Friday night, which later clawed back some losses to close 0.18% lower at RMB 13,880 per tonne. Given weak performance on Friday night and poor fundamentals, SHFE aluminium is expected to trade between RMB 13,830-13,930 per tonne today, with spot prices in a discount of RMB 20 per tonne to a premium of RMB 20 per tonne. As fundamentals remained weak, the contract is expected to extend a rangebound trend with limited upward room this week. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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