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15 AUGUST 2018 AL CIRCLE

Skyrocketing US dollar index puts pressure on LME aluminium; SHFE follows the trend

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index hit the highest level since June last year at 96.794 on Tuesday. LME aluminium continued downward trend and closed the day’s trading at US$2038 on Tuesday. It recovered most of its early losses and closed at US$2,069.5 per tonne after touching the low of US$2,045 per tonne. It is likely to trade at US$2,050-2,080 per tonne today under the pressure from a strong dollar.

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As on August 14, LME aluminium cash (bid) price stands at US$ 2037.50 per tonne, LME official settlement price stands at US$ 2038 per tonne; 3-months bid price stands at US$ 2063 per tonne, 3-months offer price is US$ 2063 per tonne; Dec 19 bid price stands at US$ 2100 per tonne, and Dec 19 offer price stands at US$ 2105 per tonne. 

The LME aluminium opening stock dropped to 1135925 tonnes. Live Warrants totalled at 819225 tonnes, and Cancelled Warrants were 316700 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2083 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2097 per tonne on August 14, from US$ 2111 per tonne on August 13.

As shorts and longs competed during the day, the SHFE 1810 contract rebounded yesterday after it fell to a low of RMB 14,670 per tonne. It closed above the 10- and 20-day moving averages, at RMB 14,700 per tonne, up RMB 10 per tonne from Monday. The SHFE 1810 contract rebounded to RMB 14,665 per tonne overnight and closed at RMB 14,635 per tonne after it opened lower and fell to RMB 14,580 per tonne. SMM expects it to trade rangebound at RMB 14,580-14,750 per tonne with spot discounts up to RMB 40 per tonne.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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