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06 MARCH 2018 AL CIRCLE

LME aluminium starts the week with a drop; to be rangebound at the five-day moving average

EDITED BY : BEETHIKA BISWAS 2MINS READ

With the US dollar hovering around the 90 level at the backdrop of the trade war between the US and other countries, base metals saw mixed trading. LME aluminium started the week with a drop. In the short term, Shanghai Metal Market expects the US dollar to continue to hover at 89.9 with resistance, and base metals to remain rangebound.

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LME aluminium is facing increasing downward pressure and closed further down at US$ 2135 per tonne on March 5. The contract is gaining support at the five-day moving average. SMM expects it to trade at US$2,135-2,160 per tonne today.

As on March 5, LME aluminium cash (bid) price stands at US$ 2134.50 per tonne, LME official settlement price stands at US$ 2134 per tonne; 3-months bid price stands at US$ 2140 per tonne, 3-months offer price is US$ 2140.50 per tonne; Dec 19 bid price stands at US$ 2170 per tonne, and Dec 19 offer price is US$ 2175 per tonne.

The LME aluminium opening stock increased again to 1322575 tonnes, Live Warrants totalled at 1095600 tonnes, and Cancelled Warrants were 226975 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2140per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has gained from US$2208 per tonne on March 5 to US$ 2219 per tonne on March 6.

SHFE aluminium dropped yesterday as China’s inventory refreshed another record high to stand at 2.19 million mt, according to SMM data. According to SMM, SHFE aluminium would be rangebound at RMB 14,250-14,450 per tonne. Following is the SHFE aluminium price movement on March 6, as updated by shfe.com.

Spot discounts are seen at RMB 170-130 per tonne. The contract would continue to be rangebound in the short term as downstream demand is expected to increase with the approach of high season.

Tagged with:

LME Price Inventory SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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