Three-month LME aluminium ended at US$1639/t; SHFE further fell to US$1801/t

The US dollar surged against a broad range of currencies on Tuesday as companies and investors sought out the most liquid currency as concerns about economic shutdowns from the coronavirus continued to dent risk appetite.

Three-month LME aluminium rebounded somewhat in North American trading hours from sharp losses in European trading hours. It later eased again, returning to its lowest since October 2016 at US$ 1,639 per tonne and ended at US$ 1,643 per tonne. The unwinding of long positions primarily accounted for the plunge in LME aluminium on Tuesday. It is likely to move between US$ 1,640 per tonne and US$ 1,700 per tonne today.

As of Tuesday, March 17, LME aluminium cash (bid) price extended decline to US$ 1627.50 per tonne and LME official settlement price to 1628 per tonne. 3-months bid price slipped from US$ 1654 per tonne to US$ 1648 per tonne, while 3-months offer price from US$ 1655 per tonne to US$ 1649 per tonne. Dec 21 bid price hovered at US$ 1748 per tonne and Dec 21 offer price at US$ 1753 per tonne.

The LME aluminium opening stock dropped from 987175 tonnes to 973050 tonnes. Live Warrants stood at 798200 tonnes and Cancelled Warrants at 174850.

LME aluminium 3-months Asian Reference Price hovered at US$ 1665.91 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE also recorded further fall to US$ 1801 per tonne on Wednesday, March 18.

The most-traded SHFE May contract fell to an intraday low of RMB 12,700 per tonne and pared some losses to finish at RMB 12,740 per tonne, 1.05 per cent lesser on the day. The bottleneck in the resumption of demand from downstream processors kept aluminium prices under pressure. The market is awaiting more supportive policies from the government to lift the market.

The most-active SHFE 2005 contract is trading at RMB 12,600-12,900 per tonne. East China spot discounts are seen at RMB 90-70 per tonne against the SHFE 2004 contract.