
The US dollar slipped into negative territory, following an anticipated retail sales report that drew little reaction from the greenback. Base metals closed mixed and aluminium fell 0.51%. SHFE aluminium climbed.
LME aluminium closed lower on Monday at US$1830 per tonne. After that a weaker US dollar lifted it to a high of US$1,876 per tonne last night. However, the contract dipped to US$1,845 per tonne, the lowest since February 14 and finally closed lower on the day at US$1,855.5 per tonne, with open interests down 4,251 lots to 663,000 lots. With resistance at the 20-day moving average, LME aluminium is likely to trade at US$1,800-1,890 per tonne today.
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As on March 11, LME aluminium cash (bid) price stood at US$ 1829 per tonne, LME official settlement price stands at US$ 1830 per tonne; 3-months bid price stands at US$ 1857.50 per tonne, 3-months offer price is US$ 1858 per tonne; Dec 20 bid price stands at US$ 1998 per tonne, and Dec 20 offer price stands at US$ 2003 per tonne.
The LME aluminium opening stock dropped to 1213125 tonnes. Live Warrants totalled at 653825 tonnes, and Cancelled Warrants were 559300 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1871 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange slightly increased to US$ 2009 per tonne today from US$ 2008 per tonne on March 11.
The SHFE 1905 contract hovered in a broad range in the morning, with an intraday low of RMB13,460 per tonne in early trades yesterday. A decline of some 9,000 mt in social inventories of primary aluminium over the weekend, as well as recovered consumption in the east, pulled the contract to a high of RMB 13,535 per tonne near closing. It ended at RMB 13,525 per tonne yesterday. The SHFE 1905 contract tested pressure at the 40-day moving average overnight as longs entered at a low of RMB13,460 per tonne. It is expected to trade at RMB 13,350-13,800 per tonne today, with spot discounts at RMB 50-10 per tonne.
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