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11 AUGUST 2017 AL CIRCLE

LME aluminium settles over US$2,000/t mark, outperforms SHFE on positive market sentiment

EDITED BY : BEETHIKA BISWAS 2MINS READ

Finally, the most awaited turnaround in the aluminium market seems to have arrived!  LME aluminium which hit the highs after more than two-and-a-half-years has crossed the US$2,000 per tonne mark on Wednesday, August 9, at US$2,018 per tonne and climbed further up to close at US$2,024 per tonne on Thursday August 10. With positive market sentiments flooding and investors thronging the market, the LME aluminium prices are expected to stay highs in the near term. LME base metals outperformed SHFE base metals yesterday.

News

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According to Shanghai Metals Market forecast, LME aluminium will trade at US$2,025-2,045 per tonne on Friday, August 11.

As on August 10, LME official cash buyer aluminium price (Bid Price) stands at US$2,023 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,024 per tonne, 3M Bid Price is US$2,030 per tonne, 3M Offer Price is US$2,030.50 per tonne, Dec1 Bid Price is US$2,068 per tonne, and Dec1 Offer Price is US$2,073 per tonne. LME aluminium Opening Stock drops further to 12,94,075 tonnes, total Live Warrants is 1031175 tonnes, and Cancelled Warrant is 262900 tonnes.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped to US$2,366 per tonne on Friday, August 11 from US$2,377 on Thursday, August 10, attributed mostly to rising stocks and slow demand.  

According to SMM analysis, SHFE 1710 aluminium rose to RMB 16,295/mt after opening at RMB 16,080/mt on Thursday, but then fell back later in the morning. In the afternoon, the contract rallied to RMB 16,025/mt before closing at RMB 16,085/mt.  SHFE 1710 aluminium may rise slower and see profit taking by longs at highs tonight.

News

SHFE 1710 aluminium will range between RMB 16,000-16,250/mt. In east China’s spot aluminium market, spot discounts are expected to move within a range of RMB 220-180/mt over SHFE 1708 aluminium contract.  

On Friday, market focus should be on US July CPI and IEA’s crude oil inventory report that will be released today. US PPI were downbeat, weighing down the US dollar index. CPI will significantly affect the US dollar.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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