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08 MAY 2017 AL CIRCLE

LME aluminium may trail behind SHFE aluminium and test support at US$1,889/t

EDITED BY : DIPANWITA GUPTA 3MINS READ

The descent in LME aluminium prices seems to be continuing this week. The light metal traded globally plummeted during Friday’s night trading to end the week-long journey at US$1,907 per tonne, down 0.36 per cent from its previous close at US$1,916 per tonne on Thursday, May 4. Shanghai Metals Market (SMM) predicts that LME aluminium will consolidate between US$1,900-1,950 per tonne and trail behind SHFE aluminium (aluminium contract traded at Shanghai Futures Exchange) this week.

As per Reuters’ analysis, LME aluminium which is already moving below all moving averages may test support at US$1,889 per tonne on Monday, May 8. A break below this support may lead the base metal contract to the next support at US$1,876 per tonne.

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News

As on May 5, LME official cash buyer price of aluminium stands at US$1,906 per tonne, cash seller & settlement price is US$1,907 per tonne, 3M buyer price is US$1,912 per tonne, 3M seller price is US$1,914 per tonne, Dec1 buyer price is US$1,950 per tonne, and Dec1 seller price is US$1,955 per tonne. The current LME official Opening Stock of aluminium is estimated at 1599725 tonnes, total Live Warrants is 969850 tonnes, and Cancelled Warrant is 629875 tonnes.

LME aluminium premiums, as on May 4, remain unchanged across major regions. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium US Premium is US$215, LME Aluminium West-Europe Premium is US$95, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).

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The benchmark aluminium price at Shanghai Metal Exchange (SME) stands at US$1,989 per tonne on Monday, May 8, down 1.19 per cent from Friday’s benchmark price of US$2,013 per tonne.

SHFE 1706 aluminium fell back to near its 5-day moving average after opening at RMB 13,910 per tonne and climbing initially to RMB 13,910 per tonne on Friday, 2017. SMM predicts that SHFE aluminium will outperform LME aluminium this week surging to 13,800-14,250 yuan per tonne on Monday, May 8, on rumours Shandong releasing capacity cut document. SHFE 1707 aluminium is likely to become the most active aluminium contract on the bourse leaving behind 1706 aluminium.

Spot aluminium in east China is projected to narrow to RMB 0-50 per tonne over SHFE 1705 aluminium and SHFE 1706 aluminium on Monday.

The market focus will be on China’s April trade balance, US’s April LMCI employment condition and eurozone’s May Sentix investor confidence index on Monday, SMM suggests.  

Tagged with:

Aluminium Price LME SMM

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EDITED BY : DIPANWITA GUPTA 3MINS READ

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