LME aluminium starts the week lower; SHFE drops 1.1% on the first trading day after CNY break

The US dollar index rose above 97 on Monday as an economic slowdown in Europe, weak emerging markets and the strong US job market drove investors to the safe-haven currency. LME base metals traded lower on Monday. LME aluminium closed flat.

LME aluminium contract closed at US$1848 per tonne on Monday, down 0.91 per cent from US$1865 per tonne on Friday, February 8. LME aluminium is expected to trade at US$1870-1900 per tonne today.

As on February 11, LME aluminium cash (bid) price stood at US$ 1847 per tonne, LME official settlement price stands at US$ 1848 per tonne; 3-months bid price stands at US$ 1869 per tonne, 3-months offer price is US$ 1869.50per tonne; Dec 19 bid price stands at US$ 2003 per tonne, and Dec 19 offer price stands at US$ 2008 per tonne.  

The LME aluminium opening stock stood at 1292175 tonnes. Live Warrants totalled at 678950 tonnes, and Cancelled Warrants were 613225 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1871.22 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 1962 per tonne today, from US$ 1989 per tonne yesterday.

SHFE base metals traded mixed on the first trading day after the Chinese New Year break. The SHFE 1903 contract weakened 1.1% to end at RMB13,315 per tonne today. The buildup of short positions accounted for the decline in SHFE aluminium.

The SHFE 1903 contract rallied above the five-day moving average to close at RMB13,370 per tonne overnight. Shanghai Metals Market expects the contract to trade at RMB13,200-13,400 per tonne today with spot discounts at RMB110-70 per tonne.The contract is expected to see further downside room after social inventories of primary aluminium in China substantially expanded over the holiday.