
The safe-haven US dollar fell against sterling yesterday. The dollar ended down 0.55% against a basket of major currencies, at 98.38, marking its biggest one-day loss in three months. Both LME and SHFE base metals rose across the board on a weaker US dollar.
A lower US dollar boosted LME aluminium yesterday after a low phase. Three-month LME aluminium climbed to a high of US$1,779 per tonne and pulled back a bit to close at US$1,769.5 per tonne overnight, up 0.83% on the day. The news of fire eruption in the Rio Tinto Alcan aluminum smelter in Straumsvík, Southwest Iceland also boosted the aluminium prices. LME aluminium is likely to be trading between US$1,740-1,810 per tonne today.
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As on September 4, Wednesday, LME aluminium cash (bid) price stood at US$ 1734 per tonne, LME official settlement price stands at US$ 1734.50 per tonne; 3-months bid price stands at US$ 1764 per tonne, 3-months offer price is US$ 1764.50 per tonne; Dec 20 bid price stands at US$ 1837 per tonne, and Dec 20 offer price stands at US$ 1842 per tonne.
The LME aluminium opening stock dropped to 922375 tonnes. Live Warrants totalled at 706675 tonnes, and Cancelled Warrants were 215700 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1759 per tonne.
SME and SHFE Aluminium Price Trend
The most traded SHFE 1910 contract rose to a two-week high of RMB 14,400 per tonne in early morning trade, before it relinquished some gains to end the day 0.21% higher at RMB 14,355 per tonne yesterday. As shorts covered their positions, the SHFE 1910 contract hit a high of RMB 14,385 per tonne before it settled up 0.14% at RMB 14,370 per tonne overnight. It is expected to trade between RMB 14,300-14,450 per tonne today.
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