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12 MARCH 2018 AL CIRCLE

LME and SHFE aluminium continue downward trends on the back of trade tensions in the international market

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME aluminium continued falling closing the week with USD 2078.5 per tonne, down from USD 2082.5 per tonne the day before.  The contract stayed firm above $2,100 per tonne over the weekend due to strong data from US non-farm payrolls. Shanghai Metals Market expects it to test the five-day moving average and trade at US$2,110-2,135 per tonne today.

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As on March 9, LME aluminium cash (bid) price stands at US$ 2078 per tonne, LME official settlement price stands at US$ 2078.50 per tonne; 3-months bid price stands at US$ 2098.50per tonne, 3-months offer price is US$ 2099 per tonne; Dec 19 bid price stands at US$ 2148 per tonne, and Dec 19 offer price is US$ 2153 per tonne.

The LME aluminium opening stock has dropped to 1311725 tonnes with the moving of stocks in the Asian warehouses after the Chinese New Year. Live Warrants totalled at 1078900 tonnes, and Cancelled Warrants were 232825 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2096.54 per tonne. 

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange fell down from US$2202 per tonne on March 9 to US$ 2183 per tonne on March 12, while the market is abuzz with trade tensions between China and the U.S.

SHFE aluminium touched a new low on Friday at US$14,020 per tonne as a slower-than-expected recovery of downstream demand post-Chinese New Year prompted investors to add to their short position. The contract is expected to trade at RMB 14,130-14,340 per tonne today. Spot discounts are seen at RMB 120-80 per tonne. Following is the SHFE aluminium price movement on March 12, as updated by shfe.com.

As the possibility of a trade war looms, the US dollar is expected to remain above 90 in the short term. Base metals are also likely to trade rangebound today and we expect LME aluminium to gain moderately over the day. SMM expects the contract to stay weak this week in the range of RMB 13,900-14,250 per tonne. SHFE aluminium will rebound as consumption is expected to recover in the short term.

Tagged with:

LME Price China Market

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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