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07 MAY 2019 AL CIRCLE

LME remained closed on Monday; SHFE aluminium opened lower on Monday and recovered some losses overnight

EDITED BY : BEETHIKA BISWAS 1MINS READ

The US dollar increased on Monday as the cautious stance in the global markets sustained the upside momentum in the greenback. , after the US President Donald Trump re-ignited trade effervescence on Sunday. SHFE nonferrous metals closed lower on the first trading day after the Labour Day holiday, as trade tensions between Washington and Beijing re-escalated after President Donald Trump said the US would hike tariffs on goods from China. Base metals ended mixed and SHFE aluminium dropped 0.11%. 

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The LME was closed for a bank holiday on Monday and it reopens trading on Tuesday.

The most traded SHFE June contract opened lower and extended its declines to end at an intraday low of RMB13,925 per tonne on Monday, down 1.8% on the day. The unwinding of long positions accounted for the losses in SHFE aluminium. Departing shorts pulled the most-active SHFE June contract to around RMB 14,000 per tonne and settled it at that level overnight. We see it trading at RMB14,000-14,100 per tonne with Spot premiums are likely to stand up to RMB 20 per tonne. 

LME aluminium is likely to trade at US$1,700-1,800 per tonne today after reopening.


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EDITED BY : BEETHIKA BISWAS 1MINS READ

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