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13 JUNE 2018 AL CIRCLE

LME closed slightly higher yesterday but fell to low overnight; SHFE trades rangebound

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME aluminium attempted to stand above the daily moving average and closed higher at US$ 2309 per tonne on June 12 from US$ 2300 per tonne. The US dollar index closed at 93.8 overnight, up 0.26%. The index rose over 0.3% at one point after the “truly historic” US-North Korea Summit. Base metals fell across the board overnight. LME aluminium fell to a low of US$2,290 per tonne overnight as its SHFE counterpart slumped with pressure from shorts. Shanghai Metals Market sees LME aluminium trading at US$2,290-2,310 per tonne today.

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As on June 12, LME aluminium cash (bid) price stands at US$ 2308.50 per tonne, LME official settlement price stands at US$ 2309 per tonne; 3-months bid price stands at US$ 2310 per tonne, 3-months offer price is US$ 2310.50 per tonne; Dec 19 bid price stands at US$ 2310 per tonne, and Dec 19 offer price stands at US$ 2315 per tonne.

The LME aluminium opening stock slightly dropped to 1162650 tonnes. Live Warrants totalled at 937800 tonnes, and Cancelled Warrants were 224850 tonne.

LME aluminium 3-months ABR price is hovering at US$ 2314 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2268 per tonne on June 13 from US$ 2302 per tonne on June 12.

With a lack of strong support, the SHFE 1808 contract traded range bound at RMB 14,980-14,840 per tonne during the day on Tuesday. Open interests of SHFE aluminium contracts rose 5,308 lots to 704,848 lots as shorts increased. SMM expects the SHFE 1808 contract to trade at RMB 14,750-14,900 per tonne. Spot prices are expected at a discount of RMB 20 per tonne to a premium of RMB 20 per tonne.  SHFE 1808 contract is expected to trade weakly in the short term. 

Key factors to watch today include the US producer price index (PPI) in May and oil inventory data over the week ended June 8 from the American Petroleum Institute (API) and from the Energy Information Administration (EIA).

Tagged with:

LME Price SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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