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07 MARCH 2018 AL CIRCLE

LME aluminium registers a slight gain; SHFE upbeat on news of capacity cut continuation in China in 2018

EDITED BY : BEETHIKA BISWAS 2MINS READ

With the US dollar hovering around the 90 level at the backdrop of the trade war between the US and other countries, base metals are expected to remain rangebound. LME aluminium started the week with a drop and remained almost flat today. In the short term, Shanghai Metal Market expects the US dollar to continue to hover at 89.9 with resistance.

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LME aluminium is struggling to stay afloat under increasing downward pressure and closed almost flat at US$ 2136 per tonne on March 6. The contract is gaining support at the five-day moving average. The contract is expected it to trade at US$2,140-2,160 per tonne today.

As on March 6, LME aluminium cash (bid) price stands at US$ 2135.50 per tonne, LME Official Settlement Price stands at US$ 2136 per tonne; 3-months bid price stands at US$ 2154.50 per tonne, 3-months offer price is US$ 2155 per tonne; Dec 19 bid price stands at US$ 2192 per tonne, and Dec 19 offer price is US$ 2197 per tonne.

The LME aluminium opening stock has dropped to 1320700 tonnes, Live Warrants totalled at 1095600 tonnes, and Cancelled Warrants were 225100 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2149 per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has gained from US$2219 per tonne on March 6 to US$ 2225 per tonne on March 7.

According to Shanghai Metal Market SHFE aluminium touched a high at RMB 14,515 per tonne today following the remarks by National Development & Reform Commission vice chairman that China would continue to cut aluminium capacity. However, pressure is seen at the 14,500 yuan/mt level as no specific policy was announced.  Following is the SHFE aluminium price movement on March 7, as updated by shfe.com.

SMM expects fundamentals to have more impact on the price movement in the near term. The contract is expected to trade at RMB14,350-14,500 per tonne today. Spot discounts are seen at RMB160-120 per tonne.

 

Tagged with:

Aluminium Price LME China

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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