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12 APRIL 2018 AL CIRCLE

LME aluminium gains for five consecutive days to touch a record high; SHFE drops on sluggish demand

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME aluminium registered five consecutive days of gains as the US imposed sanctions on Russian aluminium giant Rusal. It hit US$2,277.5 per tonne overnight, a record high since early January 2018. After testing a record high the metal contract finally closed at US$ 2253 per tonne on Wednesday April 11, up 3.7% from US$2,172 on Tuesday April 10. According to Shanghai Metals Market, LME aluminium is likely to remain strong in the short term and to trade at US$2,220-2,260 per tonne today.

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As on April 11, LME aluminium cash (bid) price stands at US$ 2251 per tonne, LME official settlement price stands at US$ 2253 per tonne; 3-months bid price stands at US$ 2243 per tonne, 3-months offer price is US$ 2245 per tonne; Dec 19 bid price stands at US$ 2232 per tonne, and Dec 19 offer price stands at US$ 2237 per tonne. 

Currently, LME official cash contract is settling higher than the three months and December contract.

The LME aluminium opening stock has increased to 1250775 tonnes. Live Warrants totalled at 978675 tonnes, and Cancelled Warrants were 272100 tonne.

LME aluminium 3-months ABR price is hovering low at US$ 2233 per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange slightly dropped from US$ 2265 per tonne on April 11 to US$ 2259 per tonne on April 12 due to sluggish demand and lacklustre trading in China's aluminium spot market.

SHFE aluminium prices fell in the morning yesterday as investors squared their long positions and added more short bets. However, upward room remains following strong performance of LME aluminium. SMM expects pressure at the RMB 14,500 per tonne level. The SHFE 1806 contract edged down today with pressure from fundamentals overnight. It will face heavier resistance if LME aluminium loses its upward track. SMM expects it to trade rangebound at RMB 14,280-14,400 per tonne with spot discounts at RMB 110-70 per tonne today.

Weighed down by potential US military action in Syria, the US dollar index edged down slightly and hovered around 89.5, but received some support from the Fed’s March meeting. The US dollar is likely to remain weak although the minutes of the Fed's March meeting will provide some support. Base metals are seen trading rangebound today.

Tagged with:

LME Price China SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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