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03 APRIL 2019 AL CIRCLE

Strong greenback pulled down both LME and SHFE aluminium overnight; likely to trade in a tight range today

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar rose against a basket of foreign currencies on Tuesday, with the index hitting 97.51, the highest since March 8. LME base metals traded lower and aluminium slid 0.5%.  SHFE aluminium declined some 0.2%.

As expected, the news of Rusal’s supply resumption and a strong dollar put pressure on LME aluminium. Three-month LME aluminium came off from earlier highs at US$1,900 per tonne to close the trading day 0.45% lower at US$1,883.5 per tonne. It has lost much of gains made since last week. Overnight gains in the greenback are likely to keep prices under pressure today and LME aluminium is expected to trade at US$1,880-1,900 per tonne.

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As on April 2, LME aluminium cash (bid) price stood at US$ 1857.50 per tonne, LME official settlement price stands at US$ 1858 per tonne; 3-months bid price stands at US$ 1883.50 per tonne, 3-months offer price is US$ 1884 per tonne; Dec 20 bid price stands at US$ 2012 per tonne, and Dec 20 offer price stands at US$ 2017 per tonne. 

The LME aluminium opening stock dropped to 1115000 tonnes. Live Warrants totalled at 723350 tonnes, and Cancelled Warrants were 391650 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1893 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has been staying almost flat for last one week and increased slightly from US$2051 per tonne yesterday to US$ 2052 per tonne today.

The most-liquid SHFE May contract lost some two-thirds of gains from Monday, as exiting longs dragged it to an intraday low of RMB 13,730 per tonne and ended it at RMB 13,770 per tonne. The most active SHFE May contract edged down to close at RMB 13,760 per tonne overnight, but remained above all moving averages. It is expected to hover between RMB 13,700-13,800 per tonne today with spot premiums of up to RMB 20 per tonne.

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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