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23 MAY 2018 AL CIRCLE

LME aluminium is losing momentum with easing of trade tensions; SHFE aluminium dips on slow demand

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME aluminium stood rangebound and closed lower at US$ 2265.50per tonne on May 22 Tuesday from US$ 2278.5 per tonne on previous closing. The US dollar index dipped from its five-month high to close at 93.59 last night after US-Sino trade tension eased down. Base metals saw mixed trading overnight. According to Shanghai Metals Market LME aluminium lost upward momentum and dipped to a low of US$2,256.5 per tonne overnight. As alumina prices continued to fall, LME aluminium is expected to weaken further and trade at US$2,245-2,280 per tonne today.

 

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As on May 22, LME aluminium cash (bid) price stands at US$ 2265 per tonne, LME official settlement price stands at US$ 2265.50 per tonne; 3-months bid price stands at US$ 2273 per tonne, 3-months offer price is US$ 2274 per tonne; Dec 19 bid price stands at US$ 2252 per tonne, and Dec 19 offer price stands at US$ 2257 per tonne.

After a month now, 3 months LME aluminium stands a little higher than LME cash with the easing out of supply concerns.

The LME aluminium opening stock slightly dropped to 1232775 tonnes. Live Warrants totalled at 962250 tonnes, and Cancelled Warrants were 270525 tonne.

LME aluminium 3-months ABR price is hovering low at US$ 2264 tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped slightly from US$ 2293 per tonne on May 22 to US$ 2275 per tonne on May 23.

Shorts dragged the SHFE 1807 contract down to the RMB 14,740 per tonne level in the morning. The contract fell to a low of RMB 14,595 per tonne in the afternoon. The SHFE 1807 contract inched down further today as downstream consumption from the domestic automobile industry was affected by the tariff cut for imported cars. SMM expects the contract to trade at RMB 14,570-14,730 per tonne today with spot discounts at RMB 90-50 per tonne.

The Markit manufacturing purchasing managers’ indices (PMI) in May for the US, the eurozone, Germany, and France will be a few things to impact the market today.

The US dollar index is likely to rise back above 94 if the Federal Reserve Board releases positive details on raising interest rates. Base metals are expected to trade rangebound on stronger US dollar. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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