
The dollar index surged on Friday as encouraging US retail sales data for May eased fears of a slowing economy. With weak manufacturing and investment data from China, LME base metals closed lower on Friday, with the biggest loss of 1.6% in aluminium. SHFE base metals also traded lower and aluminium shed 0.5%.
A stronger US dollar lowered three-month LME aluminium below all short-term moving averages to close at an intraday low of US$1,758 per tonne on Friday night. It lost all earlier gains to conclude in a weekly decline. LME aluminium is expected to trade between US$1,750-1,830 per tonne today.
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As on June 14, Friday, LME aluminium cash (bid) price stood at US$ 1737 per tonne, LME official settlement price stands at US$ 1737.50 per tonne; 3-months bid price stands at US$ 1770 per tonne, 3-months offer price is US$ 1771 per tonne; Dec 20 bid price stands at US$ 1888 per tonne, and Dec 20 offer price stands at US$ 1893 per tonne.
The LME aluminium opening stock dropped to 1064625 tonnes. Live Warrants totalled at 681550 tonnes, and Cancelled Warrants were 383075 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1778 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) also dropped to US$ 2002 per tonne today from US$ 2010 per tonne on Friday.
The most-traded SHFE August contract lost all the gains from the previous day as a considerable increase in short positions dragged it to the lowest in three trading days, at RMB13,880 per tonne on Friday. The contract fell 0.32% on the day at RMB13,910 per tonne. On Friday night, a build-up of short positions lowered the SHFE August contract to the lowest since April 9 and finally it closed the session 0.47% lower at RMB 13,855 per tonne, failing to recover from earlier losses. SHFE aluminium is expected to trade between RMB13,800-14,100 per tonne today, with spot premiums of up to RMB 20 per tonne.
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