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23 MARCH 2018 AL CIRCLE

LME aluminium registers small gain supported by falling US dollar; SHFE continues to fall

EDITED BY : HEENA IQBAL 2MINS READ

Benchmark aluminium price on London Metal Exchange increased to close at US$2059 per tonne on Thursday, March 22, up from the previous day’s close at US$ 2056.5 per tonne. According to SMM, increasing US trade protectionism dragged aluminium prices down, with LME aluminium falling to lows of $2,063 per tonne. SMM expects LME aluminium to weaken and trade at $2,050-2,090 per tonne.

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As on March 22, LME aluminium cash (bid) price stands at US$ 2057 per tonne, LME official settlement price stands at US$ 2059 per tonne; 3-months bid price stands at US$ 2078 per tonne, 3-months offer price is US$ 2079 per tonne; Dec 19 bid price stands at US$ 2123 per tonne, and Dec 19 offer price is US$ 2128 per tonne.

The LME aluminium opening stock has dropped to 1279025 tonnes. Live Warrants totalled at 1043625 tonnes, and Cancelled Warrants were 235400 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2095.88 per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange declined from US$ 2174 per tonne on March 22 to US$ 2145 per tonne on March 23.

SHFE aluminium falling to lows of RMB 13,755 per tonne. SMM expects SHFE aluminium to trade at RMB 13,700-13,880 per tonne today. Spot discounts are seen at RMB 120-80 per tonne.

According to SMM senior analyst Liu Xiaolei, SHFE aluminium prices are forecast to trade in the range of RMB 13,000-15,500 per tonne in 2018 and RMB 13,500-14,500 per tonne for the most part.He added that LME aluminium is expected to trade at $1,900-2,200 per tonne.

The US dollar edged down after it rose and stayed rangebound at 89.6 overnight. SMM expects the trend to continue and for it to take more cues from the China-US trade dispute. Base metals fell across the board with pressure from the growing trade dispute overnight. SMM sees prices remaining rangebound with downward room.

Tagged with:

Aluminium Price LME SMM

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EDITED BY : HEENA IQBAL 2MINS READ

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