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08 OCTOBER 2018 AL CIRCLE

LME aluminium prices fell on news that Alunorte refinery could restart; China market reopens after week-long holiday

EDITED BY : HEENA IQBAL 2MINS READ

LME aluminium lost all its previous gains and settled at US$2,105 per tonne last Friday night after Brazil’s environment ministry granted authorization to utilize press filter technology that could allow Hydro Alunorte refinery to restart the operation at 50 per cent of capacity.

After reaching the highest on last Thursday, the aluminium cash contract closed at US$ 2140 per tonne on October 5, down from US$ 2243.5 per tonne on October 4.

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Shanghai Metals Market expects LME aluminium to face pressure from a strong US dollar on robust economic data. Its trading range is set at US$2,080-2,140 per tonne.

As on October 5, LME aluminium cash (bid) price stands at US$ 2139.50 per tonne, LME official settlement price stands at US$ 2140 per tonne; 3-months bid price stands at US$ 2150 per tonne, 3-months offer price is US$ 2150.50 per tonne; Dec 19 bid price stands at US$ 2183per tonne, and Dec 19 offer price stands at US$ 2188 per tonne. 

The LME aluminium opening stock dropped further to 966900 tonnes. Live Warrants totalled at 605650 tonnes, and Cancelled Warrants were 361250 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2181.41 per tonne. 

SME and SHFE Aluminium Price Trend

The Shanghai Futures Exchange reopened after a week-long holiday today. SMM expects SHFE 1811 to trade at RMB14,200-14,500 per tonne today. Spot offers are likely up to a maximum of RMB30 per tonne

The US dollar weakened in choppy trading on Friday after data for September showed that job gains in the US fell short of expectations. Some data to monitor today include China’s Caixin purchasing managers’ index (PMI) in September, Germany’s industrial output in August and the eurozone’s Sentix investor confidence in October.


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EDITED BY : HEENA IQBAL 2MINS READ

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