
After a three-day losing streak in the previous session, driven by the deadline extension to comply with U.S. sanctions on Rusal, LME aluminium contract finally saw some gain and closed at US$2248 per tonne on Wednesday April 25 from US$ 2222 per tonne on Tuesday April 24.
The metal saw the seven-year high of $2,602.5 on April 19 in the wake of the sanctions, which left the market fearing a supply shortage. Three-month aluminium on the London Metal Exchange was down 1.3 per cent at $2,217 a tonne, as of 0219 GMT. LME aluminium slipped 1.3 per cent lower on Thursday morning. As seen by Shanghai Metals Market, LME aluminium would remain rangebound today with a trading range at $2,185-2,275/t.
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As on April 25, LME aluminium cash (bid) price stands at US$ 2,247 per tonne, LME official settlement price stands at US$ 2,248 per tonne; 3-months bid price stands at US$ 2238 per tonne, 3-months offer price is US$ 2239 per tonne; Dec 19 bid price stands at US$ 2233 per tonne, and Dec 19 offer price stands at US$ 2238 per tonne.
The LME aluminium opening stock has dropped to 1372500 tonnes. Live Warrants totalled at 917650 tonnes, and Cancelled Warrants were 454850 tonne.
LME aluminium 3-months ABR price is hovering low at US$ 2198 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange slightly dropped from US$ 2288 per tonne on April 25 to US$ 2269 per tonne on April 26.
SHFE aluminium traded rangebound and closed at RMB 14,405 per tonne. As both longs and shorts were cautious, aluminium futures consolidated overnight. The SHFE 1806 contract initially fell to a low of RMB 14,355 per tonne as shorts entered the market and imposed pressure. It then regained some losses with support at the 60- and 20-day moving. SMM expects it to continue to test support and trade at RMB 14,300-14,500 per tonne today. Spot premiums are seen at RMB 30-70 per tonne. Due to uncertainties in the international market and pressure from domestic fundamentals, it is likely to remain range bound in the short term as investors adopt a cautious stance.
The US dollar index hit a three-month high and closed at 91.25 overnight. Base metals performed weakly under pressure. Base metals are expected to see mixed trading in the short term with strong LME metals and weaker SHFE prices.
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