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04 JULY 2017 AL CIRCLE

Medium-term outlook positive for LME aluminium; Chalco cuts prices

EDITED BY : DIPANWITA GUPTA 2MINS READ

LME aluminium after staging a reversal last Friday, June 30, is rising at a moderate pace.  The lightmetal contract closed at US$1,917.50 per tonne after night trading on Monday, July 3, up from US$1,908.50 on June 30.

Shanghai Metals Market forecasts that LME aluminium will challenge US$1,930 per tonne and range at US$1,920-1,940 per tonne on Tuesday, July 4.

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News

As on July 3, LME official cash buyer aluminium price stands at US$1,917 per tonne, cash seller & settlement aluminium price is US$1,917.50 per tonne, 3M buyer price is US$1,921 per tonne, 3M seller price is US$1,922 per tonne, Dec1 buyer price is US$1,955 per tonne, and Dec1 seller price is US$1,960 per tonne. The current LME official Opening Stock of aluminium is estimated at 1409775 tonnes, total Live Warrant is 1068725 tonnes, and Cancelled Warrant is 341050 tonnes.

LME aluminium premiums remain unchanged across major regions today. As on June 30, LME Aluminium US Premium stands at US$190, LME Aluminium West-Europe Premium is US$80, LME Aluminium East-Asia Premium is US$105, and LME Aluminium South-East Asia Premium remains unchanged at US$15 (per tonne).

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The benchmark aluminium price at Shanghai Metal Exchange (SME) stands at US$2,041 per tonne on Monday, July 3, marginally down from the last benchmark price of US$2,042 per tonne on Monday, July 3.

At Shanghai Futures Exchange (SHFE), the most active aluminium future contract SHFE 1708 aluminium opened at RMB 14,025 per tonne on Monday, July 3, and then shot up to RMB 14,145 per tonne. Later, the contract dropped to RMB 14,130 per tonne. SMM predicts that there will be a correction for SHFE 1708 aluminium at the highs of RMB 14,000-14,160 per tonne since the market has digested the news of aluminium output cut at East Hope.  

Spot aluminium in east China market is expected to trade at discounts of RMB 160-120 per tonne over SHFE 1707 aluminium contract on Tuesday.

China Aluminum International Trading Co. (Chalco Trading) cut aluminium prices it offered in major markets today. The revised prices are as follows:  

Unit: RMB per tonne

News

The market focus will be on the Eurozone’s May PPI on Tuesday, SMM said. 


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EDITED BY : DIPANWITA GUPTA 2MINS READ

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