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24 MAY 2018 AL CIRCLE

LME aluminium on downward trend and falls below 40-day moving average; SHFE likely to rise on falling inventory

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME aluminium continued downward trend and closed lower at US$ 2227 per tonne on May 23 Wednesday from US$ 2265.50 per tonne on previous closing. The contract fell below the 40-day moving average to a low of US$2,239 per tonne last night as the US dollar gained. It then rebounded above the five-day moving average and registered a high of US$2,277 per tonne. Its overall trading range has moved downwards this week. Shanghai Metals Market expects it to be trading at US$2,245-2,275 per tonne today. 

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As on May 23, LME aluminium cash (bid) price stands at US$ 2226 per tonne, LME official settlement price stands at US$ 2227per tonne; 3-months bid price stands at US$ 2240 per tonne, 3-months offer price is US$ 2240.50 per tonne; Dec 19 bid price stands at US$ 2228 per tonne, and Dec 19 offer price stands at US$ 2233 per tonne.

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

The LME aluminium opening stock slightly dropped to 1231000 tonnes. Live Warrants totalled at 958275 tonnes, and Cancelled Warrants were 272725 tonne.

LME aluminium 3-months ABR price is hovering low at US$ 2259.47 tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped slightly from US$ 2275 per tonne on May 23 to US$ 2283 per tonne on May 24.

As shorts closed their positions, the SHFE 1807 contract rebounded to a high of RMB14,640 per tonne from a low of RMB 14,580 per tonne yesterday. As both shorts and longs closed out their positions, the trading level of the contract dipped and touched a low of RMB 14,590 per tonne in the afternoon.

The SHFE 1807 contract tracked the movements of LME aluminium last night and tested support at the 40-day moving average today morning. It is likely to rise on a potential decline in domestic aluminium inventories today. The contract is expected to trade at RMB 14,550-14,700 per tonne with spot discounts at RMB 90-50 per tonne.

Tagged with:

LME Price Inventory Aluminium

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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