After a wild week of surging, LME aluminium fell 7 per cent on Monday, its biggest one-day drop in eight years, after the United States had extended the deadline for companies to complete business with sanctions-hit Russian producer Rusal.
LME aluminium fell further yesterday and hit a low of US$2,175 per tonne as Rusal’s Kubal smelter in Sweden said it has resumed part of the deliveries and operations. Finally the aluminium contract closed at US$2,222 per tonne on Tuesday April 24. Shanghai Metals Market expects the LME aluminium contract to trade at US$2,165-2,255 per tonne today.
As on April 24, LME aluminium cash (bid) price stands at US$ 2,221 per tonne, LME official settlement price stands at US$ 2,222 per tonne; 3-months bid price stands at US$ 2221 per tonne, 3-months offer price is US$ 2223 per tonne; Dec 19 bid price stands at US$ 2220 per tonne, and Dec 19 offer price stands at US$ 2225 per tonne.
The LME aluminium opening stock has dropped to 1378350 tonnes. Live Warrants totalled at 914300 tonnes, and Cancelled Warrants were 464050 tonne.
LME aluminium 3-months ABR price is hovering low at US$ 2221 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange slightly dropped from US$ 2293 per tonne on April 24 to US$ 2288 per tonne on April 25.
As the US eased sanctions on Russia overnight, the SHFE 1806 contract traded range-bound at RMB14,360-14,545 per tonne during the day. We see the contract testing support at 60-day moving average tonight. The SHFE aluminium contract hit pressure at RMB 14,500 per tonne during the night trading session when arbitrage funds looked to push prices up. Shanghai Metals Market expects the SHFE aluminium to trade at RMB 14,300-14,550 per tonne. Spot discounts are expected at RMB 70-30 per tonne.
Inventors should monitor the development of the US-Sino trade war and prices of LME aluminium tonight.
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