
The US dollar rose against a basket of currencies on Friday, prompted by hopes of progress in US-China trade talks and that the Federal Reserve would not lower rates aggressively. LME base metals closed mixed in Friday. LME aluminium fell 0.5% and SHFE aluminium inched up 0.2%.
LME aluminium ended the week higher on Friday’s closing but lost gains during Friday night after dollar’s gain. Three-month LME aluminium shed 0.53% to end at an intraday low of US$1,785.5 per tonne on Friday. It is expected to trade at US$1,780-1,830 per tonne today.
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As on September 20, Friday, LME aluminium cash (bid) price stood at US$ 1765.50 per tonne, LME official settlement price stands at US$ 1766 per tonne; 3-months bid price stands at US$ 1790 per tonne, 3-months offer price is US$ 1792 per tonne; Dec 20 bid price stands at US$ 1863 per tonne, and Dec 20 offer price stands at US$ 1868 per tonne.
The LME aluminium opening stock dropped to 897900 tonnes. Live Warrants totalled at 700025 tonnes, and Cancelled Warrants were 197875 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1798 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE (Shanghai Future Exchange) stood at USD2041 per tonne today.
The most-liquid SHFE November contract ended its four straight sessions of decline as shorts booked profits and rallied the contract from a low of RMB 14,650 per tonne, to an intraday high of RMB 14,240 per tonne, before it ended up 0.46% at RMB14,225 per tonne on Friday. The contract then hovered in a tight range on Friday night, as longs and shorts trimmed their positions. It gained 0.21% on the session and closed at RMB14,225 per tonne. SHFE aluminium is expected to remain rangebound today, in a range of RMB 14,100-14,300 per tonne. Spot premiums are seen at RMB 20-40 per tonne over the 1910 contract.
Resumption of primary aluminium smelters grew worries about nearby higher supply, and this resulted in the previous pullback in aluminium prices. The contract is expected to hover rangebound this week with the market awaiting environmental policies after the National Day holiday.
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