Both LME and SHFE aluminium ended the week higher; likely to trade rangbound today

The US dollar index extended its declines on Friday as disappointing data of US durable goods orders grew worries that the trade conflict with China may have slowed the growth of the world’s largest economy.

LME base metals traded higher on Friday. Aluminium rose 0.3%. SHFE aluminium advanced 0.5%. As the US dollar extended its declines, three-month LME aluminium fluctuated to close Friday 0.33% higher at US$1,802 per tonne.  LME cash settlement price ended the week higher at US$1761.50 per tonne.

As on May 21, LME aluminium cash (bid) price stood at US$ 1761 per tonne, LME official settlement price stands at US$ 1761.50 per tonne; 3-months bid price stands at US$ 1793 per tonne, 3-months offer price is US$ 1795 per tonne; Dec 20 bid price stands at US$ 1913 per tonne, and Dec 20 offer price stands at US$ 1918 per tonne.  

The LME aluminium opening stock stood at 1208900 tonnes. Live Warrants totalled at 741575 tonnes, and Cancelled Warrants were 467325 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2072 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2072  per tonne today from US$ 2051 per tonne on Friday.  

With longs adding their positions, the most traded SHFE July contract extended overnight gains to close at an intraday high of RMB 14,240 per tonne, gaining 0.92% on Friday. The contract is expected to continue to climb tonight, with most transactions at RMB 14,050-14,300 per tonne.  As shorts cut and longs added their positions, the most traded SHFE July contract rose to a high of RMB 14,290 per tonne on Friday night before it ended 0.53% higher at RMB 14,255 per tonne. SHFE aluminium is expected to climb to RMB 14,290-14,350 per tonne today. Spot prices are seen at a premium of RMB 10 per tonne to a discount of RMB 10 per tonne.