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17 SEPTEMBER 2018 AL CIRCLE

LME aluminium opens the week lower on higher US dollar and easing of sanction on Rusal; to put pressure on SHFE

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The US dollar index rebounded last Friday, after a positive showing for consumer sentiment, and increased 0.46% to close at 94.96. 

Base metals, except for tin, fell across the board. LME aluminium closed the day’s trading on Friday with US$ 2015.5 per tonne and after some recovery during Friday night trading; the contract was finally dragged to US$2,029.5 per tonne as the US dollar grew on optimistic consumer sentiment data. It closed at US$2,034 per tonne with open interests up 4,071 lot to 688,000 lots. As the US Treasury eased sanctions on Rusal, LME aluminium opened lower at US$2,020 per tonne, and may trade weakly at US$2,005-2,035 per tonne today.

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As on September 14, LME aluminium cash (bid) price stands at US$ 2015 per tonne, LME official settlement price stands at US$ 2015.50 per tonne; 3-months bid price stands at US$ 2053 per tonne, 3-months offer price is US$ 2054 per tonne; Dec 19 bid price stands at US$ 2085 per tonne, and Dec 19 offer price stands at US$ 2090 per tonne. 

The LME aluminium opening stock dropped to 1046700 tonnes. Live Warrants totalled at 726150 tonnes, and Cancelled Warrants were 320550 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2048.28 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange drops to US$ 2107 per tonne today from US$ 2117 per tonne on September14. 

The SHFE 1811 contract came off from an intraday high of US$14,640 per tonne to settle at US$14,585 per tonne. The contract closed higher than open prices for the first time in 13 consecutive trading days. SMM expects it to continue its growth to test the five-day moving average. The contract is expected to face pressure from its weakened LME counterpart today. It may trade at RMB 14,480-14,600 per tonne with spot offers at a discount of RMB 10 per tonne to a premium of 30 per tonne. 

Market participants should monitor the movement of LME lead, developments in US sanctions on Rusal and China’s winter output curbs.

Tagged with:

Aluminium LME RUSAL Price China

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