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10 SEPTEMBER 2018 AL CIRCLE

LME aluminium has started the weak slightly higher on supply uncertainties; SHFE remains flat

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar rose last Friday against all major currencies and closed 0.33% higher at 95.43. Base metals closed mixed. LME aluminium rose to a high of US$2,080 per tonne after settling flat on Friday as workers extended their strike at Alcoa's alumina operations in Western Australia. With pressure at the five- 40- and 60-day moving averages, it closed at US$2,063 per tonne overnight, and may trade at US$2,055-2,080 per tonne today.

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As on September 7, LME aluminium cash (bid) price stands at US$ 2028 per tonne, LME official settlement price stands at US$ 2030 per tonne; 3-months bid price stands at US$ 2065 per tonne, 3-months offer price is US$ 2065.50 per tonne; Dec 19 bid price stands at US$ 2103 per tonne, and Dec 19 offer price stands at US$ 2108 per tonne. 

The LME aluminium opening stock dropped to 1061575 tonnes. Live Warrants totalled at 765025 tonnes, and Cancelled Warrants were 296550 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2050.44 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped slightly to stand at US$ 2129 today from US$ 2131 per tonne on September 7. 

The SHFE 1811 contract dropped to end in negative territory at RMB 14,655 per tonne after it crept to an intraday high of RMB 14,755 per tonne on Friday September 7. The news that European consumers would avoid signing supply agreements in Berlin with Rusal for 2019 had an effect on the prices. Longs pulled the SHFE 1811 contract to a high of RMB 14,790 per tonne on Friday night as rumours spread that China will raise the tax refund for aluminium products. The contract closed at RMB 14,735 per tonne with heavy pressure at the 20-day moving average. SMM expects it to trade at RMB 14,680-14,800 per tonne today, with spot offers at a discount of RMB 20 per tonne to a premium of RMB 20 per tonne.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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