
The US dollar index inched up to 94.7 overnight after the Federal Reserve concluded a two-day meeting on monetary policy and kept interest rates unchanged. Both LME and SHFE base metals fell across the board overnight. LME aluminium closed the day’s trading at US$2036per tonne. Later on it gained at night trading and fell to a low of $2,047.5/mt overnight. Shanghai Metals Market expects it to trade at US$2,045-2,060 per tonne today.

As on August 1, LME aluminium cash (bid) price stands at US$ 2035 per tonne, LME official settlement price stands at US$ 2036 per tonne; 3-months bid price stands at US$ 2057 per tonne, 3-months offer price is US$ 2057.50 per tonne; Dec 19 bid price stands at US$ 2105 per tonne, and Dec 19 offer price stands at US$ 2110 per tonne.
The LME aluminium opening stock dropped to 1195150 tonnes. Live Warrants totalled at 851500 tonnes, and Cancelled Warrants were 343650 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2073 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped slightly to US$ 2090 per tonne on August 1, from US$ 2104 per tonne on August 1.
While the SHFE 1809 contract dipped with pressure at RMB 14,500 per tonne, it continued to stand firm above the five-day moving average yesterday. It consolidated around the 60-day moving average and closed at RMB 14,430 per tonne, down RMB 70 per tonne from July 31. The SHFE 1809 contract opened lower today morning after falling to a low of RMB 14,350 per tonne. The nonferrous complex fell across the board overnight as US-China trade disputes intensified. SMM expects the SHFE 1809 contract to trade at RMB 14,350-14,450 per tonne today with spot discounts at RMB 80-40 per tonne.
Key factors to watch today will be US initial jobless claims last week, factory orders and durable goods orders in June.
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