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10 MAY 2018 AL CIRCLE

LME aluminium surged to a high of US$2,370/t in the morning; SHFE closed flat

EDITED BY : HEENA IQBAL 2MINS READ

After showing gain and closing at US$2384 per tonne on Tuesday May 8, LME aluminium closed down at US$ 2295 per tonne on Wednesday May 9. The metal surged to a high of US$2,370 per tonne from a low around US$2,280 per tonne overnight. Shanghai Metals Market expects it to test support at the five- and 20-day moving averages and trade at US$2,320-2,370 per tonne today. 

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LME aluminium stocks declined to a low level of 2007 yesterday. According to news published by Reuters, as a result of an LME ban on Rusal metal, aluminium stocks "are back to the low levels of 2007, with only 864,000 tonnes left on warrant", Malcolm Freeman, CEO of KingdomFutures, wrote in a note.

As on May 9, LME aluminium cash (bid) price stands at US$ 2293 per tonne, LME official settlement price stands at US$ 2295 per tonne; 3-months bid price stands at US$2280 per tonne, 3-months offer price is US$ 2281 per tonne; Dec 19 bid price stands at US$2175 per tonne, and Dec 19 offer price stands at US$ 2180 per tonne. 

The LME aluminium opening stock stood at 1276450 tonnes. Live Warrants totalled at 863950 tonnes, and Cancelled Warrants were 412500 tonne.

LME aluminium 3-months ABR price is hovering low at US$2344.07tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped from US$ 2285 per tonne on May 9 to US$ 2281 per tonne on May 10.

The SHFE 1807 contract climbed up to a high of RMO 14,670 per tonne and hit the five-day moving average overnight. It traded rangebound within a narrow range as shorts also entered the market. SMM expects it to trade weakly rangebound at RMB 14,500-14,700 per tonne today with spot discounts at RMB 40-0 per tonne.

The US dollar is likely to remain rangebound around 93 in the short term while base metals are expected to continue their rangebound patterns.


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EDITED BY : HEENA IQBAL 2MINS READ

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