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22 MARCH 2018 AL CIRCLE

LME aluminium resumes downward trend; High inventories give pressure to SHFE aluminium

EDITED BY : HEENA IQBAL 2MINS READ

After a gain on Tuesday to US$ 2073 per tonne, LME aluminium resumed its downward trends and closed at US$ 2056.5 per tonne on Wednesday 21 March. As updated by Shanghai Metals Market, LME aluminium met resistance at the 10-day moving average and lacked strong support overnight. SMM expects the contract to trade at US$2,065-2,095 per tonne today.

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As on March 21, LME aluminium cash (bid) price stands at US$ 2056 per tonne, LME official settlement price stands at US$ 2056.50 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$ 2127 per tonne, and Dec 19 offer price is US$ 2132 per tonne.

The LME aluminium opening stock has dropped to1283025 tonnes. Live Warrants totalled at 1049625 tonnes, and Cancelled Warrants were 233400 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2081.68 per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange increased from US$ 2165 per tonne on March 21 to US$ 2174 per tonne on March 22.

SHFE aluminium hit a high of RMB 13,915 per tonne as investors covered their shorts last night. SMM expects SHFE aluminium to trade at RMB 13,820-14,000 per tonne today. Spot discounts are seen at RMB 140-100 per tonne. Investors will take cues from changes in inventory today.

The US dollar edged down to stand around 89.6 as the Federal Reserve’s interest rate decision fell below expectations overnight. SMM expects the dollar to stay rangebound today. Base metals inched up across the board overnight, and are expected to trade rangebound in the short term.


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EDITED BY : HEENA IQBAL 2MINS READ

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