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25 DECEMBER 2017 AL CIRCLE

LME registers substantial gain before Christmas holiday; SHFE still slow on low demand and no support from alumina

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME has registered some substantial growth during the holiday season with the benchmark LME prices rising above US$ 2130/t. LME aluminium registered a record high in Friday's trading and today trading closes at 12.30 ET on Christmas holiday.   

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As on December 22, LME official cash buyer aluminium price (Bid Price) stands at US$ 2136 per tonne, cash seller & settlement aluminium price (Offer price) is US$ 2137 per tonne, 3M Bid Price is US$ 2153 per tonne, 3M Offer Price is US$ 2153.50 per tonne, Dec1 Bid Price is US$ 2193per tonne, and Dec1 Offer Price is US$2,198 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1104950 tonnes, slightly down from the last closing. Total Live Warrants is 891525 tonnes, and Cancelled Warrant is 213425 tonnes.   Metals are leaving LME warehouses on good demand bringing down the inventory level in the last week.

According to calculations by Reuters and Commodity Futures Trading Commission data released on Friday, U.S. dollar has been pushed to the lowest level since mid-November, which could be one reason lifting LME prices.

SHFE market update

The benchmark aluminium price on Shanghai Metal Exchange has increased from US$2,168 per tonne on December 22 to US$2,189 per tonne on December 25.  Aluminium price in China is getting downward pressure from low consumption and without much support from alumina prices and the upturn is slow.

SHFE aluminium inventory is not expected to drop considering lower orders from downstream companies. SHFE aluminium price movement on December 22 as updated by Shanghai Metals Market was as follows:

Most companies will settle accounts during next week, the last trading week in 2017, which makes it more difficult to reach transaction. The main contract of SHFE aluminium is expected to trade at RMB 14,700-15,000/t, testing the resistance at RMB 15,000/t. Spot discounts are getting deeper at RMB 310-270/t.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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