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26 MAY 2020 AL CIRCLE

LME was closed on Monday for spring bank holiday; SHFE price expanded growth to US$1854/t

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The US dollar edged higher against a basket of rivals on Monday, while oil prices eased on concerns over rising tensions between the US and China over Beijing’s plans to impose security laws on Hong Kong and the possibility of sanctions from Washington.

The London Metal Exchange was closed on Monday for spring bank holiday. On Friday, May 22, LME aluminium cash (bid) price and LME official settlement price stood at US$ 1473 per tonne after declining from US$ 1487 per tonne on May 21.

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SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE expanded its growth from US$ 1839 per tonne on Monday, May 25, to US$ 1,854 per tonne on Tuesday, May 26.

SHFE price expanded growth to US$1854/t

The most-liquid SHFE July contract halted its increase at RMB 12,890 per tonne and trimmed some gains to close the day at RMB 12,840 per tonne, up 0.31 per cent on the day. Continued fast declines in domestic inventories will cap any downsides in prices. SMM data showed that social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, decreased 55,000 tonnes from last Thursday May 21 to 924,000 tonnes as of Monday May 25.

The most active SHFE July contract eased off a session-high of RMB 12,875 per tonne to close 0.16 per cent firmer at RMB 12,845 per tonne in overnight trading. A continued fall in social inventories and firm spot premiums support near-dated SHFE aluminium contracts, while expectations of greater supply and weaker demand weigh on later-dated contracts. The July contract is expected to move between RMB 12,600 per tonne and RMB 13,000 per tonne today.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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