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09 MARCH 2020 AL CIRCLE

Three-month LME aluminium lost 1.86% last Friday amidst the US dollar’s biggest weekly decline

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The US dollar recorded the biggest weekly decline in nearly three years while the Japanese yen strengthened as the widening reach of the coronavirus sent investors scrambling for safety. The dollar index, which tracks the greenback against a basket of other currencies, slipped to the lowest level since February 2019 at 95.7 and finished the week 2.02 per cent lower. 

Three-month LME aluminium lost 1.86 per cent last Friday, March 6, and finished at US$ 1685.5 per tonne, with US stock futures and crude oil prices slumping over the weekend. Trading range is expected at US$ 1650 per tonne to US$ 1720 per tonne today.

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Three-month LME aluminium lost 1.86% last Friday

As of Friday, March 6, LME aluminium cash (bid) price further declined to US$ 1686.5 per tonne from US$ 1714 per tonne on March 5. LME official settlement price also recorded a plunge to US$ 1687 per tonne from US$ 1715 per tonne. 3-months bid price stood at US$ 1708 per tonne, while 3-months offer price at US$ 1709 per tonne. Dec 21 bid price hovered at US$ 1825 per tonne and Dec 21 offer price at US$ 1830 per tonne.

The LME aluminium opening stock declined from 1040775 tonnes to 1030750 tonnes. Live Warrants inched up to 798000 tonnes, but Cancelled Warrants dropped to 232750 tonnes.

LME aluminium 3-months Asian Reference Price plunged from US$ 1727 per tonne to US$ 1709 per tonne.

Global Aluminium Industry Outlook 2020

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE extended its decline to US$ 1856 per tonne on Monday, March 9, from US$1,882 per tonne on March 6.

The most-active SHFE 2005 contract plumbed a new three-year trough of RMB 13,080 per tonne in early morning trade, before it recovered some ground to end at RMB 13,175 per tonne. The contract weakened later this week, as logistics recovery allowed cargoes to move to social warehouses, and growing inventories outweighed accelerated downstream recovery. The contract is expected to test the RMB 13,000 per tonne level next week. The most-liquid SHFE contract is expected to be traded at RMB 12,600 per tonne to RMB 13,000 per tonne. 

Tagged with:

Aluminium Price LME

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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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