
The US dollar weakened on Wednesday after data showed that US services sector activity slowed to a more than 1-1/2-year low in March however it remains slightly above 97. LME base metals traded higher on Wednesday and aluminium crept 0.6%. SHFE aluminium inched up close to 0.2%.
With resistance at US$1,900 per tonne, three-month LME aluminium fluctuated to close higher at US$1,895.5 per tonne on Wednesday, recovering from the previous day’s losses. Aluminium cash contract closed at US$ 1865 per tonne. Three months aluminium is expected to trade at US$1,880-1,910 per tonne today.
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As on April 3, LME aluminium cash (bid) price stood at US$ 1864 per tonne, LME official settlement price stands at US$ 1865 per tonne; 3-months bid price stands at US$ 1893 per tonne, 3-months offer price is US$ 1894 per tonne; Dec 20 bid price stands at US$ 2023 per tonne, and Dec 20 offer price stands at US$ 2028 per tonne.
The LME aluminium opening stock dropped to 1108825 tonnes. Live Warrants totalled at 723400 tonnes, and Cancelled Warrants were 385425 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1896 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange has been staying almost flat for last one week and increased slightly from US$2052 per tonne yesterday to US$ 2055 per tonne today.
A buildup of longs and exiting shorts stemmed decline in the SHFE most-liquid May contract, which rose to a high of RMB 13,820 per tonne before settled at RMB 13,800 per tonne. Open interests accumulated by 1,866 lots to 684,000 lots. On Thursday April 4, SMM will release its weekly survey results for the social inventories of primary aluminium.
The most active SHFE May contract recovered from a lower open and losses in early trade, closing higher at RMB 13,795 per tonne overnight. Its trading level was little changed from the previous day. The US dollar remains above 97, which would likely pressure aluminium prices today. The SHFE 1905 contract is expected to trade at RMB 13,750-13,850 per tonne today. Spot premiums are seen up to RMB 30 per tonne due to recent tightness in supply.
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