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11 JULY 2018 AL CIRCLE

LME aluminium hovers at 10-day moving average level; SHFE feels pressure on low downstream demand

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index gained 0.04% to close at 94.09 as the euro weakened. LME aluminium closed Wednesday’s trading at US$ 2140 per tonne, slightly up from US$ 2135.5 per tonne in last closing. LME aluminium tumbled from above the 10-day moving average level to a low of US$2,081.5 per tonne on intensified trade conflicts. Shanghai Metals Market expects it to to trade under pressure at US$2,060-2,085 per tonne today.

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As on July 10, LME aluminium cash (bid) price stands at US$ 2140 per tonne, LME official settlement price stands at US$ 2140.50per tonne; 3-months bid price stands at US$ 2109 per tonne, 3-months offer price is US$ 2109.50 per tonne; Dec 19 bid price stands at US$ 2152 per tonne, and Dec 19 offer price stands at US$ 2157 per tonne.

The LME aluminium opening stock increased to 1116550 tonnes. Live Warrants totalled at 934175 tonnes, and Cancelled Warrants were 182375 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2124.02 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2074 per tonne on July 11 from US$ 2119 per tonne on July 10.

The SHFE 1809 contract recovered some losses during yesterday after touching a low of RMB 14,130 per tonne. The contract dropped slower overnight compared with most base metals. It is seen hovering at RMB 14,000-14,200 per tonne with spot discount at RMB 40-0 per tonne. 

Costs for primary aluminium are likely to stabilize or even rebound with the rise in alumina prices. Meanwhile, anticipation of a growth in aluminium inventory grows amid low demand and slow pace in re-commissioning of capacity. SMM expects aluminium prices to remain rangebound at lows without a certain direction in the short term.

The US President Donald Trump’s push for allies of the North Atlantic Treaty Organization (NATO) to increase military spending added to market worries. Key factors to watch today include the US weekly crude oil inventories, its PPI in June and wholesale inventories data in May. 

 

 

 

 

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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