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06 APRIL 2018 AL CIRCLE

LME aluminium’s sharp fall worries market participants; likely to test support at US$2007 in the short term

EDITED BY : BEETHIKA BISWAS 2MINS READ

The most dreaded downturn in aluminium that was worrying analysts during the peak period in 2017 seems to be approaching. Trump’s trade restrictions on import acted as a catalyst in the already volatile meal market. LME continues downward trend without any strong fundamental in the international market.  After losing its position of US$2,000 per tonne the LME aluminium contract finally closed much lower at US$ 1969 per tonne on April 5. It is likely to extend its downward trend in the light of growing trade tension.

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There is no clear indication of further stability in price. According to Metal Bulletin analyst Andy Farida, "With no sign that global on-exchange stock levels are declining or that there will be a toned-down approach from the US or China on fresh tariffs, LME aluminium is likely to remain under downside pressure.”

LME aluminium is expected to hover within a range of $1,955-$1,967 per tonne, as it has cleared a support at US$2,000. A more realistic target could be either US$1,967 or US$1,955. A break above US$2,007 could lead to a gain into the range of US$2,021-$2,042.

As on April 5, LME aluminium cash (bid) price stands at US$ 1968 per tonne, LME official settlement price stands at US$ 1969 per tonne; 3-months bid price stands at US$ 1989.50 per tonne, 3-months offer price is US$ 1990 per tonne; Dec 19 bid price stands at US$ 2048 per tonne, and Dec 19 offer price stands at US$ 2053 per tonne. 

The LME aluminium opening stock has dropped to 1265350 tonnes. Live Warrants totalled at 1006875 tonnes, and Cancelled Warrants were 258475 tonne.

LME aluminium 3-months ABR price is hovering low at US$ 1993 per tonne. 

Shanghai Metals Exchange is closed on Thursday and Friday for China's national Tomb Sweeping Day holiday. Following is the Shanghai Futures Exchange aluminium price movement on April 6, as updated by shfe.com.  

Tagged with:

LME Price Aluminium

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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