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28 JANUARY 2019 AL CIRCLE

Weak US dollar pulled up LME aluminium to new heights on Friday night; lifting of sanction on Rusal likely to pull it down today

EDITED BY : BEETHIKA BISWAS 2MINS READ

The US dollar index fell to a week-low on Friday, as traders refocused on the Federal Reserve's policy meeting next week when the US central bank is expected to keep interest rates unchanged. LME base metals traded higher on Friday. LME Aluminium climbed over 1%.SHFE base metals performed similarly and aluminium increased by some 0.4%.

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LME aluminium closed last week’s trading higher at US$1866.5 per tonne on Friday January 25.  Following losses in the US dollar, LME aluminium shrugged off resistance at the 60-day moving average to the day’s high of US$1,919 per tonne before it lost some gains to end at US$1,905 per tonne on Friday night. It is expected to weaken in a range of US$1,880-1,905 per tonne today as the U.S. treasury lifted sanctions on aluminium giant Rusal and other Russian firms linked to oligarch Oleg Deripaska on yesterday January 27.

As on January 25, LME aluminium cash (bid) price stood at US$ 1865.50 per tonne, LME official settlement price stands at US$ 1866.50 per tonne; 3-months bid price stands at US$ 1885 per tonne, 3-months offer price is US$ 1887 per tonne; Dec 19 bid price stands at US$ 2018 per tonne, and Dec 19 offer price stands at US$ 2023 per tonne.  

The LME aluminium opening stock decreased to 1301100 tonnes. Live Warrants totalled at 756850 tonnes, and Cancelled Warrants were 544250 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1887 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange shot up to US$ 2009 per tonne today from January 25.

The SHFE 1903 contract weakened in morning trade and hovered around RMB 13,520 per tonne in a RMB 40 per tonne range in afternoon trade on Friday. The contract dipped 0.3% to finish the trading day at RMB 13,520 per tonne. The SHFE 1903 contract pared some earlier gains to close at RMB 13,585 per tonne on Friday night as some longs took profits after the contract rose to a high of RMB 13,610 per tonne. The contract is expected to trade rangebound at RMB13,480-13,580 per tonne today with spot discounts at RMB 80-40 per tonne.

Tagged with:

Aluminium Price LME RUSAL

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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