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05 SEPTEMBER 2018 AL CIRCLE

Robust US dollar keeps LME and SHFE aluminium low; input costs to give support in the short term

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index rallied to the highest since August 21 last night at 95.73, and closed at 95.41. Concerns over an escalating trade conflict between the US and China battered emerging market currencies and prompted investors to seek safe harbour of the dollar. Base metals, except for SHFE tin, fell across the board.

LME aluminium inched up to a high of US$2,105 per tonne during the Asian trading session, but a robust US dollar lowered it to a low of US$2,056 per tonne. It closed the day’s trading at US$ 2040 per tonne and regained little to close at US$2,063 per tonne overnight. The contract may consolidate at US$2,055-2,080 per tonne today.

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As on September 4, LME aluminium cash (bid) price stands at US$ 2039.50 per tonne, LME official settlement price stands at US$ 2040 per tonne; 3-months bid price stands at US$ 2069.50 per tonne, 3-months offer price is US$ 2070 per tonne; Dec 19 bid price stands at US$ 2105 per tonne, and Dec 19 offer price stands at US$ 2110 per tonne. 

The LME aluminium opening stock dropped to 1067075 tonnes. Live Warrants totalled at 774200 tonnes, and Cancelled Warrants were 292875 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2093 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2132 today from US$ 2155 per tonne on yesterday September 4. 

While the SHFE 1811 contract regained some overnight losses during the day, it ended the trading day in the negative territory, some 0.64% lower at RMB 14,830 per tonne. The contract settled at RMB 14,710 per tonne after it fell to the lowest at RMB 14,660 per tonne. The contract is likely to trade between RMB 14,650-14,780 per tonne today, with spot discounts at RMB 50-10 per tonne.

The contract has closed lower for five consecutive trading days and now stands above the 20- and 40-day moving averages. We expect limited downward room as raw material costs are at a higher range.

 

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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