
The US dollar sharply rose on Wednesday, hitting a two-year high against a basket of other currencies and the index gained 0.5% to end at 98.554. LME base metals closed mixed on Wednesday. LME aluminium lost close to 0.3% and SHFE base aluminium slipped 0.2%.

The stronger greenback took a toll on aluminium prices on Wednesday during the day’s trading and overnight. During the day, LME cash contract closed lower at US$ 1781.50 per tonne and three months aluminium closed at US$ 1806.50 per tonne. Three-month LME aluminium erased earlier gains overnight to close 0.25% lower at US$1,799 per tonne on Wednesday.
As on July 31, Wednesday, LME aluminium cash (bid) price stood at US$ 1776 per tonne, LME official settlement price stands at US$ 1776.50 per tonne; 3-months bid price stands at US$ 1806 per tonne, 3-months offer price is US$ 1807 per tonne; Dec 20 bid price stands at US$ 1908 per tonne, and Dec 20 offer price stands at US$ 1913 per tonne.
The LME aluminium opening stock increased to 1028875 tonnes yesterday. Live Warrants totalled at 780125 tonnes, and Cancelled Warrants were 248750 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1805 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) decreased to US$ 2010 per tonne today from US$ 2024 per tonne on Wednesday.
The most traded SHFE September contract shed 0.1% during day’s trading yesterday and declined further by 0.18% to end at RMB 13,885 per tonne overnight. Alumina supply cuts and an anticipated pick-up in consumption in September are likely drive shorts to cover positions after some downward correction in SHFE aluminium, which will limit declines in prices. SHFE aluminium is expected to trade between RMB 13,800-13,900 per tonne today, with spot prices in a discount of RMB 20 per tonne and a premium of 20 per tonne.
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