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11 APRIL 2017 AL CIRCLE

LME aluminium flattens at US$1,929/t, while SHFE aluminium inches higher

EDITED BY : DIPANWITA GUPTA 3MINS READ

LME aluminium price remained unchanged as it closed at US$1,929 per tonne after night trading on Monday, April 10. The light metal, despite indications of a potential reversal, is taking time to gather momentum. Shanghai Metal Market (SMM) says LME aluminium will regain its lost ground and move at US$1,910-1,950 per tonne range on Tuesday, April 11.

As on April 10, LME official cash buyer price of aluminium stands at US$1928.50 per tonne, cash seller & settlement price is US$1,929 per tonne, 3M buyer price is US$1,940 per tonne, 3M seller price is US$1,940.50 per tonne, Dec1 buyer price is US$1,977 per tonne, and Dec1 seller price is US$1982 per tonne. The current LME official Opening Stock of aluminium is estimated at 1802800 tonnes, total Live Warrants is 1007875 tonnes, and Cancelled Warrant is 794925 tonnes.

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LME aluminium premiums remain unchanged across major global markets. LME Aluminium US Premium stands at US$215, LME Aluminium West-Europe Premium stands at US$95, LME Aluminium East-Asia Premium is US$105 and LME Aluminium South-East Asia Premium is US$15 (per tonne) as on April 7.

The benchmark aluminium price on Shanghai Metal Exchange (SME) has edged up marginally. As on April 11, it stands at US$2,003.33 per tonne, up 0.16 per cent from its previous benchmark price of US$2,000 per tonne on April 10.

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Aluminium contracts traded on the Shanghai Futures Exchange (SHFE) moved higher on Monday only to experience a marginal dip at the end of the day. SHFE 1705 started at RMB 14,120 per tonne and then rallied to above the 5-day moving average at the tail of trading to close at RMB 14,070 per tonne. The contract will keep fluctuating in the range of RMB 13,850-14,100 per tonne on Tuesday, April 11, SMM foresees.

Spot aluminium in China's domestic market is projected to trade at discounts of RMB 180-140 per tonne on Tuesday.

Today’s data calendar has it that ZEW’s April Economic Climate Index for Germany and Europe, NFIB’s March CCI at small enterprises in the US, US February JOLTs, seasonally adjusted industrial output in eurozone in February and March CPI for UK will be released back to back. The market will eye on base metals price trends that weakened overnight. A fall in aluminium prices remains a possibility.

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EDITED BY : DIPANWITA GUPTA 3MINS READ

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