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10 SEPTEMBER 2019 AL CIRCLE

Weak US dollar helped LME aluminium pare losses yesterday; SHFE remains bullish on news of Indonesia's bauxite export ban

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar weakened against sterling. The dollar index pared some losses and ended 0.08% lower at 98.33. Base metals closed mixed. SHFE aluminium lost 0.1% and LME aluminium grew 1%.

Three-month LME aluminium surged during the Asian trading session on market talk that Indonesia will expedite its ban on bauxite exports. A lower US dollar again lifted LME aluminium after it slipped to around US$1,777.5 per tonne, settling it 0.95% higher at US$1,800 per tonne last night. LME aluminium is likely to trade within US$1,750-1,820 per tonne. 

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LME

As on September 9, Monday, LME aluminium cash (bid) price stood at US$ 1768.50per tonne, LME official settlement price stands at US$ 1769 per tonne; 3-months bid price stands at US$ 1796 per tonne, 3-months offer price is US$ 1796.50 per tonne; Dec 20 bid price stands at US$ 1867 per tonne, and Dec 20 offer price stands at US$ 1872 per tonne.

The LME aluminium opening stock dropped to 920000 tonnes. Live Warrants totalled at 707400 tonnes, and Cancelled Warrants were 212600 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1789 per tonne.

SME and SHFE Aluminium Price Trend

The contract for November delivery became the most traded SHFE aluminium contract, and gained 0.07% on the day to end at RMB 14,385 per tonne on Monday. The November contract then consolidated around the five-day moving average overnight, supported by five straight weeks of declines in domestic primary aluminium inventories. It is seen trading between RMB 14,300-14,400 per tonne today.  

RED MUD

Report that Indonesia mulls expediting its ban on bauxite exports drove longs to aggressively load up positions in the afternoon. This bolstered the 1910 contract a one-year high of RMB 14,680 per tonne, before the contract soon gave back those gains as shorts added their positions and longs took profits. The SHFE 1910 contract inched up 0.21% to end the day at RMB 14,420 per tonne.  SMM data showed that social inventories of primary aluminium ingots in China extended their declines over the weekend, losing 14,000 tonnes from Thursday. SHFE aluminium is expected to remain robust in the short term.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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