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09 JULY 2019 AL CIRCLE

Three months aluminium drops on loss of confidence in longs; SHFE remains rangebound and conosolidated

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar held on to gains from last Friday, hovering at a three-week high, as investors continued to reappraise the Federal Reserve interest rate outlook in the wake of last week's nonfarm payrolls report. Base metals traded mixed. LME aluminium closed flat and SHFE aluminium gained 0.11%.

While aluminium cash contract gained over the day, three months aluminium fell yesterday driven by dropping confidence in longs. Over the night, three-month LME aluminium fell to a low of US$1,796 per tonne after it unsuccessfully tested pressure from US$1,810 per tonne. It ended flat overnight at US$1,804.5 per tonne, and may hover between US$1,780-1,850 per tonne with limited upward momentum today.

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lme

As on July 8, Monday, LME aluminium cash (bid) price stood at US$ 1782.50 per tonne, LME official settlement price stands at US$ 1783 per tonne; 3-months bid price stands at US$ 1799 per tonne, 3-months offer price is US$ 1800 per tonne; Dec 20 bid price stands at US$ 1905 per tonne, and Dec 20 offer price stands at US$ 1910 per tonne.

The LME aluminium opening stock dropped substantially below the one million mark plunging down to 956575 tonnes on Monday. Live Warrants totalled at 635500 tonnes, and Cancelled Warrants were 321075 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1802 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) remains flat from yesterday at US$ 2002 per tonne.  

As shorts added their positions, the most traded SHFE August contract came off from earlier highs to an intraday low of RMB 13,735 per tonne yesterday, near the five-day moving average, before it recovered some ground to close 0.25% lower at RMB 13,770 per tonne.  The contract then consolidated around RMB 13,785 per tonne, with a high of RMB 13,800 per tonne, and ended 0.11% higher at RMB 13,785 per tonne. It is expected to trade at RMB 13,700-13,850 per tonne today. 

leaderspeak

SMM data showed that social inventories of primary aluminium ingots in China shrank by a smaller margin of 6,000 tonne over the weekend, with sales especially poor in the north indicating weaker consumption in the third quarter. Aluminium producers further held off on the resumption of closed capacity. Those factors kept SHFE aluminium rangebound.

Tagged with:

Aluminium Price LME

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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