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27 MARCH 2017 AL CIRCLE

LME aluminium to test US$1,940/t; SHFE aluminium will see weak trading, says SMM

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium maintained a fairly steady uptrend last week. The lightmetal which started the week at US$1,908 per tonne on Monday, March 20, ended at US$1,917.50 per tonne on Friday, March 24. The rise was moderate at 0.49 per cent over the past seven days. Shanghai Metals Market (SMM) says LME aluminium will continue its rising momentum this week as well. The contract after meeting resistance at US$1,940 per tonne on Friday is expected to keep testing US$1,940 per tonne on Monday, March 27.

As on March 24, LME official cash buyer price of aluminium stands at US$1,917 per tonne, cash seller & settlement price is US$1,917.50 per tonne, 3M buyer price is US$1,929.50 per tonne, 3M seller price is US$1,930 per tonne, Dec1 buyer price is US$1,965 per tonne, and Dec1 seller price is US$1,970 per tonne. The current LME official Opening Stock of aluminium is estimated at 1945800 tonnes, total Live Warrants is 1063025 tonnes, and Cancelled Warrant is 882775 tonnes.

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As on March 23, LME Aluminium US Premium remains unchanged at US$215, LME Aluminium West-Europe Premium stands at US$95, LME Aluminium East-Asia Premium is US$100 and LME Aluminium South-East Asia Premium is US$15 (per tonne).

News

The benchmark price of aluminium remains flat on Shanghai Metal Exchange (SME). As on March 27, the price stands at US$1,959 per tonne. On Friday last week, it was recorded at US$1,958 per tonne.

SHFE 1705 aluminium traded on Shanghai Futures Exchange (SHFE) opened at RMB 13,825 per tonne on Friday and then dived lower at RMB 13,695 per tonne. As per SMM forecast, the contract is estimated to move between RMB 13,600-13,850 per tonne on Monday.

Spot aluminium in China's domestic market should trade at discounts of RMB 160-120 per tonne on Monday, says SMM.

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The data calendar for Monday features Value-added at China’s industrials in February, IFO’s economic indicators for Germany and Dallas Fed business activity index.

January-February value-added at China’s industrials rose 6.3 per cent YoY vis-a-vis the 6.2 per cent expected. Since the data in February imrpoved by 0.6%, it is expected that the value-added at China’s industrials during the period under forecast will also rise and boost the domestic commodity market.

Tagged with:

Aluminium Price SMM LME

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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