News of cyber-attack on Hydro smelter lifted LME aluminium overnight; both LME and SHFE are likely to trade higher today
The US dollar edged lower against a basket of major currencies due to concerns over the strength of the American economy and expectations that the Federal Reserve will prove accommodative at its meeting this week. Base metals closed higher on Tuesday and aluminium grew 0.66%. SHFE aluminium closed 0.81% higher.
LME aluminium climbed to US$1,944 per tonne after it was reported that Norsk Hydro’s aluminium smelters were hit by a cyber-attack. This was before it jumped to a three-month high of US$1,946 per tonne, and ended at US$1,940 per tonne. The light metal contract is expected to trade at a broad range of US$1,850-1,950 per tonne.
As on March 19, LME aluminium cash (bid) price stood at US$ 1907 per tonne, LME official settlement price stands at US$ 1907.50 per tonne; 3-months bid price stands at US$ 1934 per tonne, 3-months offer price is US$ 1935 per tonne; Dec 20 bid price stands at US$ 2058 per tonne, and Dec 19 offer price stands at US$ 2063 per tonne.
The LME aluminium opening stock increased to 1178375 tonnes. Live Warrants totalled at 761425 tonnes, and Cancelled Warrants were 416950 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1932 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased from US$ 2036 per tonne on March 19 to US$ 2047 per tonne today.
The most liquid SHFE aluminium May contract extended overnight gains during the day to end 1% higher at RMB 13,730 per tonne yesterday, above all moving averages. The SHFE 1905 contract then rallied from a low of RMB 13,695 per tonne, to around the five-day moving average overnight. It closed at RMB 13,760 per tonne, after it rose to a high of RMB 13,790 per tonne. It is likely to consolidate at highs today, at RMB 13,650-13,900 per tonne, with its. Spot premiums are set at RMB 180-220 per tonne today. Anticipation of consumption recovery accounted for the gains in SHFE aluminium.
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