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06 MARCH 2017 AL CIRCLE

LME aluminium on a downhill slope as crude oil declines; China inventory grows above 1 MT

EDITED BY : DIPANWITA GUPTA 2MINS READ

Aluminium prices on London Metal Exchange continued its journey downward after crude oil displayed a mixed undertone for third day on the back of record inventory rise in the US. The contract closed at US$1,909 per tonne after Friday's night trading, down 1.03 per cent from the previous day's closing of US$1,929 per tonne. Shanghai Metals Market (SMM) in its forecast says LME aluminium will trade further lower at US$1,884-1,912 per tonne on Monday, March 6.

According to Reuters' morning analysis, LME aluminium will likely test support at US$1,857 per tonne, a break below which could result in a loss to the next support at US$1,833 per tonne.

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As on March 3, LME official cash buyer price of aluminium stands at US$1,907 per tonne, cash seller & settlement price is US$1,909 per tonne, 3M buyer price is US$1,912 per tonne, 3M seller price is US$1,913 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 2160925 tonnes, total Live Warrants is 1300975 tonnes, and Cancelled Warrant is 859950 tonnes.

News

Source: http://www.lme.com

As on March 2, LME Aluminium US Premium remains unchanged at US$215, LME Aluminium West-Europe Premium stands at US$95, LME Aluminium East-Asia Premium is US$95 and LME Aluminium South-East Asia Premium is US$15.

In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) has dropped in tandem with the LME aluminium price. The price is down by 0.30 per cent from its previous day's price of US$1,986 per tonne on Friday to stand at US$1,980 per tonne on Monday, March 6.

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Aluminium contracts traded on Shanghai Futures Exchange (SHFE) rose during Friday's night trading. SHFE 1705 aluminum after opening at RMB 14,010 per tonne advanced to the 5, 10 and 50-day moving averages and closed at US$14,235 per tonne. SMM predicts the contract will keep hovering at highs in the short term. Aluminium prices in major Shanghai markets are expected to range within RMB 13,950-14,150 per tonne on Monday.

Spot aluminium in China's domestic market is expected to trade at discounts of RMB 200-160 per tonne on Monday.

Aluminium ingot inventories in China’s five major trading markets grew above one million tonne as of March 2, shows SMM data.


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EDITED BY : DIPANWITA GUPTA 2MINS READ

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