
LME aluminium tumbled to the weakest since April after data showed world primary aluminium production increased to 5.441 million tonnes in May. The metal failed to receive support at US$2,177 per tonne last night and touched a low of US$2,165 per tonne, Shanghai Metals Market reports. LME aluminium price remained unchanged at US$ 2179 per tonne on Wednesday, June 20. It is likely to trade at US$2,160-2,185 per tonne today.
SMM expects it to face pressure from a potential trade conflict as the European Union plans to impose a 25% tariff on €2.8 billion worth of US products.
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As on June 20, LME aluminium cash (bid) price stands at US$ 2178 per tonne, LME official settlement price stands at US$ 2179 per tonne; 3-months bid price stands at US$ 2176 per tonne, 3-months offer price is US$ 2176.50 per tonne; Dec 19 bid price stands at US$ 2200 per tonne, and Dec 19 offer price stands at US$ 2205 per tonne.
The LME aluminium opening stock slightly dropped to 1132475 tonnes. Live Warrants totalled at 886700 tonnes, and Cancelled Warrants were 245775 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2181.15 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2175 per tonne on June 21 from US$ 2280 per tonne on June 20.
The SHFE 1808 contract closed at RMB14, 200 per tonne after it climbed to a high of RMB14, 295 per tonne in the afternoon. SMM expects the contract to face pressure in the short term in the low season and potential growth in spot supplies. Support is expected at RMB14, 000 per tonne.
As seen by SMM, the SHFE 1808 contract traded weakly overnight with pressure from shorts. It closed at RMB14, 130 per tonne after it fell to a low of RMB14, 120 per tonne. It is likely to trade at RMB 14,040-14,200 per tonne with spot discounts at RMB 60-20 per tonne.
The US dollar index climbed above 95 and closed at 95.12 on Wednesday. Key factors to watch today include the US initial jobless claims over the week ended June 16, the April housing price data from the Federal Housing Finance Agency (FHFA) and the preliminary reading of eurozone consumer confidence for June.
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