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29 APRIL 2020 AL CIRCLE

LME aluminium price further declined to US$1465/t on extended opening stock hike; SHFE contract rallied to six-week peak

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The US dollar fell for the second day on Tuesday, April 28, as investors put pressure on safe-haven currencies as they eyed the Federal Reserve’s meeting and rebalanced portfolios ahead of the end of the month.

Month-end rebalancing is negative for the greenback, with the US dollar likely to be sold against the euro, sterling, the Japanese yen and the Australian dollar, according to Mark McCormick, global head of FX strategy at TD Securities in Toronto.

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LME aluminium price further declined to US$1465/t on extended opening stock hike; SHFE contract rallied to six-week peak

LME aluminium cash (bid) price as well as LME official settlement price declined on Tuesday, April 28, from US$ 1472.5 per tonne on April 27 to US$ 1465 per tonne. 3-months bid price and 3-months offer price also decreased from US$ 1509.5 per tonne to US$ 1503.5 per tonne. Dec 21 bid price and Dec 21 offer price hovered at US$ 1628 per tonne compared to US$ 1629.50 per tonne on the previous day.

The LME aluminium opening stock increased from 1336775 tonnes on Monday to 1347000 tonnes, as of Tuesday, April 28. Live Warrants totalled at 1196625 tonnes and Cancelled Warrants 150375 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1509.74 per tonne after declining from US$ US$ 1518.46 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE, on Wednesday, April 29, came in at US$ 1788 per tonne, up US$ 25 per tonne from US$ 1763 per tonne on Tuesday, April 28.

Industry 4.0 in Aluminium

The most-traded SHFE June contract extended its rally to a six-week peak of RMB 12,515 per tonne, shortly before it eased somewhat to end the day 0.93 per cent higher at RMB 12,485 per tonne. Upbeat fundamentals supported SHFE aluminium to be the stellar performer among nonferrous metals on the day. The contract is expected to try to stand convincingly above the 12,500 mark tomorrow. In the physical market, spot premiums are expected to remain firm ahead of the Labour Day holiday.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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