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16 NOVEMBER 2017 AL CIRCLE

LME aluminium keeps slipping as Chinese consumption slows down

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium dropped marginally as consumption in China, the world’s biggest aluminium consumer market, slowed down alongside the onset of winter capacity cuts. The light metal contract which closed at US$2,085 per tonne on Tuesday, November 14, came down to close at US$2,082 per tonne on Wednesday, November 15.

Although it is a bit early to say whether aluminium market has entered a bear or a bull phase, the cyclicality and its resultant anticipation has definitely put the commodity in a negative domain as far as the short to medium term outlook is concerned.

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As on November 15, LME official cash buyer aluminium price (Bid Price) stands at US$2,081.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,082 per tonne, 3M Bid Price is US$2,096 per tonne, 3M Offer Price is US$2,096.50 per tonne, Dec1 Bid Price is US$2,142 per tonne, and Dec1 Offer Price is US$2,147 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1165825 tonnes, total Live Warrants is 915925 tonnes, and Cancelled Warrant is 249900 tonnes.                 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has edged slightly higher from US$2,292 per tonne on November 15, to US$2,316 per tonne on November 16.  

In China domestic market, aluminium price is keeping volatile with SHFE aluminium struggling at around RMB 15,500 per tonne and 5-day moving average. The latest price movement on Shanghai Futures Exchange as on November 16 is as follows:

Shanghai Metals Market predicts that due to changed macro anticipation, aluminium price is unlikely to rebound effectively in the near term.  

Tagged with:

LME Price Inventory China

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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