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15 JUNE 2019 AL CIRCLE

LME and SHFE aluminium performed mixed over the week to end lower on Friday; likely to trade rangebound next week

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar started the week higher on Monday, June 11 but, dipped on Tuesday. Then it continued moving up and down leading to a mixed performance by LME and SHFE base metals over the week. Finally the dollar index ended the week higher on Friday. LME aluminium started the week with US$ 1720.5 per tonne and gained further to reach US$ 1756 per tonne but on Friday, LME cash contract plunged to US$ 1737.5 per tonne on Friday. Three months aluminium also plunged after seeing some gains mid-week. The contract is not likely to fluctuate much in the coming week and expected to trade within a lower range.

As on June 14, Friday, LME aluminium cash (bid) price stood at US$ 1737 per tonne, LME official settlement price stands at US$ 1737.50 per tonne; 3-months bid price stands at US$ 1770 per tonne, 3-months offer price is US$ 1771 per tonne; Dec 20 bid price stands at US$ 1888 per tonne, and Dec 20 offer price stands at US$ 1893 per tonne.

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The LME aluminium opening stock dropped to 1064625 tonnes. Live Warrants totalled at 681550 tonnes, and Cancelled Warrants were 383075 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1778 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) also started the week lower at US$ 2015 per tonne, moved upward during mid-week and dropped to US$ 2010 per tonne on Friday.

The most active SHFE July contract climbed to a high of RMB14,015 per tonne in the beginning of the week.  The most-active SHFE contract moved to the August contract on June 12, which climbed along with the five-day moving average, to a high of RMB 13,985 per tonne.  The SHFE August contract lost all the gains from the previous day as a considerable increase in short positions dragged it to the lowest in three trading days, at RMB 3,880 per tonne on Friday. The contract fell 0.32% on the day at RMB13,910 per tonne. Limited upward momentum is likely to keep the contract within a range of RMB 13,800 to 14,000 per tonne next week. 

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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