
The US dollar headed for its worst week in almost four months. The dollar index, which tracks the greenback against a basket of other currencies, fell for the third consecutive week and ended 0.4% lower at 97.2 last Friday. LME base metals closed mixed as aluminium gained 0.43%. The SHFE aluminium increased 0.18%.
LME aluminium started the last week lower and continued flat in the first three days. It started gaining from Thursday and ended the week higher. Three-month LME aluminium hit a week high of US$1,743 per tonne as it rebounded from an intraday low of US$1,723 per tonne last Friday night, before it ended 0.43% higher at US$1,736 per tonne. A weaker US dollar index may keep LME aluminium within a range of US$1,730-1,750 per tonne today.
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As on October 18, Friday, LME aluminium cash (bid) price stood at US$ 1728 per tonne, LME official settlement price stands at US$ 1729 per tonne; 3-months bid price stands at US$ 1730 per tonne, 3-months offer price is US$ 1731 per tonne; Dec 20 bid price stands at US$ 1815 per tonne, and Dec 20 offer price stands at US$ 1820 per tonne.
The LME aluminium opening stock dropped to 977125 tonnes. Live Warrants totalled at 814750 tonnes, and Cancelled Warrants were 162375 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1723 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE (Shanghai Future Exchange) has increased to USD 1999 per tonne today, 21 October 2019.
The most-liquid SHFE December contract also regained previous losses and rose for the fifth straight session, finishing at RMB 13,885 per tonne. However, we see limited upward room in the contract today, with a trading range between RMB 13,840-13,940 per tonne.
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