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03 OCTOBER 2017 AL CIRCLE

LME aluminium headed for a near-term downtrend; revisits Aug 30 low of US$2,066t

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium has come under pressure. With the US Dollar index trading higher by 0.5 per cent on the day (October 3), the light metal contract crossed the US$2,000 per tonne mark and fell into the US$2,065-US$2,085 range. After night trading on October 2, Monday, LME aluminium closed at US$2,067 per tonne, down from US$2,110 per tonne on Friday, September 29.

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As on October, LME official cash buyer aluminium price (Bid Price) stands at US$2,066 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,067.50 per tonne, 3M Bid Price is US$2,089 per tonne, 3M Offer Price is US$2,090 per tonne, Dec3 Bid Price is US$2,135 per tonne, and Dec3 Offer Price is US$2,140 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1259025 tonnes, total Live Warrants is 1001000 tonnes, and Cancelled Warrant is 258025 tonnes.

In China, trading at Shanghai Futures Exchange remains suspended due to the Chinese National Day and Mid-Autumn holidays on October 1-8, 2017. Trading will resume on October 9, Shanghai Metals Market updated.

The aluminium futures contract on India’s Multi Commodity Exchange (MCX) witnessed narrow-range trading between INR137-INR140 per kg in the past week. This leaves the immediate outlook unclear for the light metal contract. Currently, MCX aluminium is poised at INR138 per kg. A breakout on either side of INR137 or INR140 will determine the direction of the next move. If the MCX aluminium declines below INR137 per kg, it can fall to INR135.5 initially, observed market analysts.


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EDITED BY : DIPANWITA GUPTA 2MINS READ

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