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03 SEPTEMBER 2018 AL CIRCLE

US dollar gains and puts pressure on both LME and SME aluminium; likely to trade rangbound today

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar registered growth for a second consecutive trading day last Friday after it was reported that the US and Canada ended trade negotiations without any agreement. The greenback is on track to end the month of August on a positive note, up about 0.6% amid trade tensions. It has advanced in four of the last five months, gaining nearly 9%. Base metals traded with pressure. 

LME aluminium closed Friday’s trading at US$ 2112 per tonne. The contract then slid overnight after an initial gain, to a low of US$2,116 per tonne driven by a strengthened US dollar.  LME aluminium is expected to trade at US$2,105-2,135 per tonne today.

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As on August 31, LME aluminium cash (bid) price stands at US$ 2111.50 per tonne, LME official settlement price stands at US$ 2112 per tonne; 3-months bid price stands at US$ 2137 per tonne, 3-months offer price is US$ 2139 per tonne; Dec 19 bid price stands at US$ 2175 per tonne, and Dec 19 offer price stands at US$ 2178 per tonne. 

The LME aluminium opening stock dropped to 1070750 tonnes. Live Warrants totalled at 780750 tonnes, and Cancelled Warrants were 290000 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2139.29 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2155 per tonne on September 3, from US$ 2161 per tonne on August 31.

The SHFE 1810 contract climbed to a high of RMB 14,955 per tonne after it hovered around RMB 14,875 per tonne on Friday. It then lost its gains and settled the trading day 0.53% lower at RMB 14,890 per tonne. Technical pressure depressed the SHFE 1811 contract down from a high of RMB 15,010 per tonne and it closed at RMB 14,910 per tonne on Friday night. Today, trading range is set at RMB 14,820-14,950 per tonne with spot discounts hovering at RMB 60-20 per tonne.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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