
The US dollar traded lower as the US government bond yields extended their decline from last week on fears of slower global growth. Base metals ended mixed and both LME and SHFE aluminium dropped overnight.
LME registered the third consecutive loss yesterday to close at US$1856 per tonne after the contract reached its highest last week after the news of cyber-attack on Hydro. Given limited upward momentum, LME aluminium slid after it increased to the highest overnight at US$1,899 per tonne. The contract is likely to trade at US$1,840-1,900 per tonne today.
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As on March 25, LME aluminium cash (bid) price stood at US$ 1855.50 per tonne, LME official settlement price stands at US$ 1856 per tonne; 3-months bid price stands at US$ 1886 per tonne, 3-months offer price is US$ 1887 per tonne; Dec 20 bid price stands at US$ 2020 per tonne, and Dec 19 offer price stands at US$ 2025 per tonne.
The LME aluminium opening stock dropped to 1155450 tonnes. Live Warrants totalled at 727700 tonnes, and Cancelled Warrants were 427750 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1894 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped from US$ 2039 per tonne on March 25 to US$ 2029 per tonne today.
The most active SHFE May contract slid to the day-low of RMB13,620 per tonne in afternoon trade yesterday before it rebounded to end at RMB 13,645 per tonne, below the five- and 10-day moving averages and down 0.73% on the day. The SHFE 1905 contract traded weakly as shorts accumulated and the contract tested support at the 60-day moving average. It may trade at RMB 13,400-13,700 per tonne today. Spot premiums are likely to settle at RMB 270-310 per tonne.
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