
The US dollar climbed in last Friday's trading, as investors grappled with an inverted US Treasury yield curve. Base metals declined across the board and both LME and SHFE aluminium edged down.
As the US dollar jumped, LME aluminium dipped to a low of US$1,880 per tonne on Friday night and tested support from the 60-day moving average. It rebounded and settled at US$1,902 per tonne. LME aluminium is expected to trade at US$1,840-1,940 per tonne today.
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As on March 22, LME aluminium cash (bid) price stood at US$ 1866.50 per tonne, LME official settlement price stands at US$ 1867 per tonne; 3-months bid price stands at US$ 1893 per tonne, 3-months offer price is US$ 1893.50 per tonne; Dec 20 bid price stands at US$ 2023 per tonne, and Dec 19 offer price stands at US$ 2028 per tonne.
The LME aluminium opening stock dropped to 1160275 tonnes. Live Warrants totalled at 728950 tonnes, and Cancelled Warrants were 431325 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1906 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped from US$ 2047 per tonne on March 22 to US$ 2039 per tonne today.
The most active SHFE 1905 aluminium contract fluctuated during Friday, paring some overnight losses to end the trading day 0.29% lower at RMB 13,755 per tonne. While this week’s decline in social inventories of primary aluminium reflected recovering consumption, prices of A00 aluminium stayed at highs at the RMB 14,000 per tonne level, bolstered by the upcoming tax cuts. The SHFE 1905 contract slid to a low of RMB 13,655 per tonne as investors cut their longs and added shorts. It is expected to trade at RMB13,500-13,800 per tonne with spot premiums at RMB 240-280 per tonne today.
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