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11 SEPTEMBER 2017 AL CIRCLE

LME aluminium slips on strong bearishness; may fall further

EDITED BY : DIPANWITA GUPTA 2MINS READ

In a sign of the prevailing bearishness, LME aluminium dropped marginally from its earlier close of US$2,075 per tonne on Thursday, September 7, to US$2072 per tonne on Friday, September 8. According to the Shanghai Metals Market forecast, the light metal contract will drop further into the range of US$2,080-2,105 per tonne today as the bearish trend is likely to continue over the short term.

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As on September 8, LME official cash buyer aluminium price (Bid Price) stands at US$2,071 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,072 per tonne, 3M Bid Price is US$2,095 per tonne, 3M Offer Price is US$2,096 per tonne, Dec3 Bid Price is US$2,217 per tonne, and Dec3 Offer Price is US$2,222 per tonne. LME aluminium Opening Stock stands at 1321500 tonnes, total Live Warrants is 1154225 tonnes, and Cancelled Warrant is 167275 tonnes.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price at Shanghai Metal Exchange (SME) has dropped from US$2,473 per tonne on Friday, September 8, to US$2,441 per tonne on Monday, September 11.

At Shanghai Futures Exchange, base metal prices plunged by two percent on an average during night trading hours on Friday, September 8. SMM predicts that the most active aluminium contract SHFE 1711 aluminium will perform better than its LME counterpart due to anticipation of smelter capacity cuts ahead of winter. However, declines in other base metals on the bourse will keep SHFE 1711 aluminium restricted within the range of RMB 15,700-15,950 per tonne on Monday, September 11.

In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 90-50 per tonne on Monday.  

The market will be eyeing China’s rising CPI in August (1.8 per cent YoY) and PPI (+6.3 per cent YoY) apart from the US dollar index movement on Monday, September 11, for direction.


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EDITED BY : DIPANWITA GUPTA 2MINS READ

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