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23 APRIL 2020 AL CIRCLE

LME aluminium price moved higher at US$1461.5/t with strengthened SHFE at US$1751/t

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The US dollar declined on Wednesday, April 22, giving up some gains from the previous day, as oil prices bounced back and eased investors demand for safe havens. But the greenback remained well supported amid persisted concerns about the uncertainty around the coronavirus crisis.

Three-month LME aluminium moved higher with strengthened SHFE aluminium, ending at $1,520 per tonne on Wednesday, up 2.01 per cent on the day. The K-indicator broke up the 20-day moving average. Today, LME aluminium is expected to trade between US$ 1,490-1,520 per tonne.

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LME aluminium price moved higher at US$1461.5/t

As of Wednesday, April 22, both LME aluminium cash (bid) price and LME official settlement price recorded a rise of US$ 18 per tonne to stand at US$ 1461.50 per tonne. 3-months bid price and 3-months offer price also increased by US$ 18 per tonne to come in at US$ 1501.50 per tonne. Dec 21 bid price and Dec 21 offer price hovered at US$ 1630 per tonne, down by US$ 18.5 per tonne from US$1611.50 on Tuesday, April 21.

The LME aluminium opening stock stood almost flat at 1298125 tonnes compared to 1298225 tonnes in the previous day. Live Warrants totalled at 1184850 tonnes and Cancelled Warrants 113275 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1493.50 per tonne, up from US$ 1488.23 per tonne on Tuesday, April 21.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE grew to US$ 1751 per tonne on Thursday, April 23, followed by decline yesterday, on April 22, from US$ 1728 per tonne to US$ 1719 per tonne.

Industry 4.0 in Aluminium

The aggressive load-up of long positions lifted the most-traded SHFE June contract into the green, which notched an intraday high of RMB 12,245 per tonne in afternoon trade before erasing some gains to close the day 0.49 per cent firmer at RMB 12,195 per tonne. The May contract’s premiums over the June contract widened to RMB 85 per tonne, as the dash by traders to fulfil long-term supply contracts at the end of the month tightened spot availability and buoyed spot premiums. The June contract is expected to hover at RMB 12,000-12,250 per tonne tomorrow.

The most-active SHFE contract is to be traded at RMB 12,000-12,250 per tonne. 

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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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