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13 FEBRUARY 2017 AL CIRCLE

LME aluminium to gain further; Shanghai base metals to diverge due to a strong dollar

EDITED BY : DIPANWITA GUPTA 2MINS READ

The upward momentum in LME aluminium stands intact even in this week. The light metal was last traded at US$1,848 per tonne during Friday's night trading, up 0.54 per cent from the previous day's closing of US$1,839 per tonne. Shanghai Metals Market (SMM) in its forecast says LME aluminium will test the previous highest level and trade at US$1,865-1,885 per tonne on Monday, February 13.

As on February 10, LME official cash buyer price of aluminium stands at US$1,848 per tonne, cash seller & settlement price is US$1,849 per tonne, 3M buyer price is US$1,857.5 per tonne, 3M seller price is US$1,858 per tonne, Dec1 buyer price is US$1,905 per tonne, and Dec1 seller price is US$1,910 per tonne. The current LME official Opening Stock of aluminium is estimated at 2231300 tonnes, total Live Warrants is 1649375 tonnes, and Cancelled Warrant is 581925 tonnes.

LME Aluminium US Premium, as on February 9, stands at US$205, LME Aluminium West-Europe Premium is recorded at US$80, LME Aluminium East-Asia Premium remains unchanged at US$90, and LME Aluminium South-East Asia Premium is US$15.

News
In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) scaled higher at US$1,980 per tonne on Monday against US$1,963 per tonne on Friday.

Aluminium contract traded on Shanghai Futures Exchange- SHFE 1704 aluminum opened at RMB 13,860 per tonne on Friday and then shed some gains during the trading hours to close down at RMB 13,835 per tonne. SMM says, SHFE 1704 aluminum will remain range-bound on Monday.

SHFE 1703 aluminum will be greatly affected by other base metal prices on the bourse and move between RMB 13,900-14,180 per tonne on Monday.

Spot aluminium in China's domestic market is expected to trade at discounts of RMB 120-80 per tonne on Monday.    

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The dollar is strengthening. SMM says, the uptick will weigh down base metals in Shanghai market; as a result, prices will diverge in the near term. Eyes should be on OPEC monthly crude oil market report on Monday.

Tagged with:

Aluminium Price LME SMM

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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