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17 JULY 2019 AL CIRCLE

LME aluminium faced resistance overnight on rising dollar after trading higher during the day; SHFE regained some losses

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar gained as surprisingly strong growth in US retail sales in June eased worries about the American economy. Base metals ended mostly higher. LME aluminium nudged up, while SHFE aluminium rose 0.1%.

Aluminium contracts continued upward movement over the day’s trading yesterday. Three-month LME aluminium came off overnight after climbing to a high of US$1,856.5 per tonne, settling higher on the day at US$1,844 per tonne. LME aluminium is likely to trade at US$1,800-1,860 per tonne today.

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LME aluminium

As on July 16, Tuesday, LME aluminium cash (bid) price stood at US$ 1817.50per tonne, LME official settlement price stands at US$ 1818 per tonne; 3-months bid price stands at US$ 1836 per tonne, 3-months offer price is US$ 1837 per tonne; Dec 20 bid price stands at US$ 1938 per tonne, and Dec 20 offer price stands at US$ 1943 per tonne.

The LME aluminium opening stock registered an increase yesterday to 994125 tonnes. Live Warrants totalled at 700600 tonnes, and Cancelled Warrants were 293525 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1846 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) increased to US$ 2017 today from US$ 2015 per tonne on Tuesday.  

The SHFE August contract rebounded to a high of RMB 13,905 per tonne before it erased some gains to end the trading day 0.43% higher at RMB 13,885 per tonne yesterday. The SHFE September contract also pared some gains as it eased from a high of RMB 13,930 per tonne, before closed higher for the third consecutive trading day at RMB 13,905 per tonne. Today, it is expected to trade between RMB 13,800-13,950 per tonne.

red mud

While SHFE aluminium is feeling pressure from the lack of cost support from alumina and absence of a substantial pick-up in social inventories, a strong LME counterpart and an anticipated consumption recovery in September buoyed SHFE aluminium.

Tagged with:

LME Price Aluminium

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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