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26 APRIL 2017 AL CIRCLE

LME aluminium to move at highs; supply-side concerns will support SHFE aluminium

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium prices find support at US$1,931 and rises to US$1,943 per tonne after night trading on Tuesday, April 26. The 0.77 per cent rise from the previous close of US$1,928 per tonne on Monday, April 24, can be explained by the fact that the US dollar index is hovering near its five-month low and is showing little signs of ticking up. Reuters' analysis states, LME aluminium may test next support at US$1,955 per tonne, and has a good chance of breaking below this level and falling more towards US$1,946 support.

According to Shanghai Metals Market (SMM) forecast, LME aluminium is likely to move at highs of US$1,950-1,975 per tonne on Wednesday, April 26.

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As on April 25, LME official cash buyer price of aluminium stands at US$1,942 per tonne, cash seller & settlement price is US$1,943per tonne, 3M buyer price is US$1,953 per tonne, 3M seller price is US$1,954 per tonne, Dec1 buyer price is US$1,990 per tonne, and Dec1 seller price is US$1995 per tonne. The current LME official Opening Stock of aluminium is estimated at 1668925 tonnes, total Live Warrants is 987000 tonnes, and Cancelled Warrant is 681925 tonnes.

LME aluminium premiums, as on April 24, remain unchanged across major regions. LME Aluminium East-Asia Premium stands at US$110, LME Aluminium US Premium is US$215, LME Aluminium West-Europe Premium is US$95, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).

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The benchmark aluminium price at Shanghai Metal Exchange (SME) on April 26 stands at US$2,062 per tonne, up 0.53 per cent from Tuesday's price of US$2,051 per tonne.

Aluminium futures contracts traded on Shanghai Futures Exchange (SHFE) jumped on the news of extensive capacity crackdown. SHFE 1706 aluminium opened at RMB 14,305 per tonne and then shot to RMB 14,460 per tonne. Later, the prices fell back due to profit-taking by the longs and ended at RMB 14,375 per tonne. SMM says SHFE 1706 aluminium will move at RMB 14,340-14,550 per tonne on Wednesday, April 26.

Spot aluminium in China's domestic market is projected to trade at discounts of RMB 170-130 per tonne over SHFE 1705 aluminium on Wednesday.

The LME and LME Clear are publishing a discussion paper today on the LME’s market structure. The paper comprehensively sets out the LME’s vision and invites feedback from market participants, reported an industry source.

Tagged with:

Aluminium Price SMM LME

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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