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30 NOVEMBER 2018 AL CIRCLE

LME aluminium recovered some losses to close at US$ 1933 per tonne on Thursday; weak fundamentals continue to put pressure

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar recovered but remained under 97 as concerns before the G20 meeting prompted investors to buy back the currency. At the G20 summit in Buenos Aires on Friday and Saturday, the US President Donald Trump and China President Xi Jinping are scheduled to discuss trade issues after months of tension between the world's two biggest economies. 

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After falling to a new low, LME aluminium recovered some losses and closed Thursday’s trading at US$ 1933 per tonne. However, the contract failed to stand firm above the 10-day moving average at night with resistance at the 20-day moving average. The contract is likely to trade at US$1,920-1,940 per tonne today. 

As on November 29, Thursday, LME aluminium cash (bid) price stood at US$ 1931per tonne, LME official settlement price stands at US$ 1933 per tonne; 3-months bid price stands at US$ 1932 per tonne, 3-months offer price is US$ 1933 per tonne. LME cash and three months contact now stand at the same level. Dec 19 bid price stands at US$ 2002 per tonne, and Dec 19 offer price stands at US$ 2007 per tonne.

The LME aluminium opening stock dropped to 1055275 tonnes. Live Warrants totalled at 795675 tonnes, and Cancelled Warrants were 259600 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1933 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 1946 per tonne today from US$ 1958 per tonne on November 29.

The SHFE 1901 contract reversed overnight gains and fell into the red to close at RMB 13,650 per tonne yesterday, posting a three-day losing streak. Without positive news on the fundamentals front, aluminium prices remained weak and the contract is unlikely to rebound substantially. The SHFE 1901 contract opened below all moving averages overnight, and dipped further to close at RMB 13,645 per tonne as investors added their shorts. Slow downstream demand weighed on fundamentals despite cuts on supplies. We expect the contract to trade at RMB 13,600-13,700 per tonne with spot discounts at RMB 80-20 per tonne.

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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