
The US dollar index fell on Tuesday after the International Monetary Fund downgraded its outlook on the global economy. LME base metals traded mixed on Tuesday. LME aluminium rose 0.3% and SHFE aluminium advanced some 0.3%.
Three-month LME aluminium fluctuated to end 0.3% higher at US$1,879 per tonne on Tuesday, with its trading level barely changed from the previous day. LME aluminium gained at night after a fall in dollar. However, the contract is expected to perform weakly today, with most transactions at US$1,850-1,890 per tonne.
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As on April 9, LME aluminium cash (bid) price stood at US$ 1850 per tonne, LME official settlement price stands at US$ 1851 per tonne; 3-months bid price stands at US$ 1876 per tonne, 3-months offer price is US$ 1876.50 per tonne; Dec 20 bid price stands at US$ 2005 per tonne, and Dec 20 offer price stands at US$ 2010 per tonne.
The LME aluminium opening stock dropped to 1094600 tonnes. Live Warrants totalled at 728825 tonnes, and Cancelled Warrants were 365775 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1876 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange stayed almost flat for one week and increased from US$2054 per tonne on April 9 to US$ 2060 per tonne today.
Lower domestic inventories of primary aluminium supported aluminium prices while supplies grew and costs of raw materials extended their drops. The most-liquid SHFE May contract stopped its downturn at a low of RMB 13,760 per tonne, as shorts took profits and left. It ended at RMB13,810 per tonne. Longs in Shanghai lifted the most active SHFE May contract to a seven-day high of RMB 13,880 per tonne overnight, near the year-high of RMB 13,900 per tonne on April 1. As some longs took profits, it pared some gains to end at RMB 13,820 per tonne, posting a five-day winning streak. Declining inventories and improving consumption will continue to offer support, with pressure from previous highs. SHFE aluminium is expected to trade at RMB 13,780-13,880 per tonne today with spot premiums of up to RMB 20 per tonne.
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