
The US dollar index rose on Wednesday, even as government data showed moderate US inflation in May. Most LME base metals closed lower on Wednesday but aluminium advanced 0.5%. SHFE base metals performed similarly overnight and aluminium inched up.
Improved market sentiment bolstered three-month LME aluminium on Wednesday closing 0.48% up at US$1,786.5 per tonne. LME cash contract closed slightly lower at US$ 1753.50 per tonne at the day’s closing. LME aluminium is expected to trade between US$1,750-1,820 per tonne today.
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As on June 12, Wednesday, LME aluminium cash (bid) price stood at US$ 1753 per tonne, LME official settlement price stands at US$ 1753.50 per tonne; 3-months bid price stands at US$ 1785 per tonne, 3-months offer price is US$ 1786 per tonne; Dec 20 bid price stands at US$ 1905 per tonne, and Dec 20 offer price stands at US$ 1910 per tonne.
The LME aluminium opening stock dropped to 1085475 tonnes. Live Warrants totalled at 708775 tonnes, and Cancelled Warrants were 376700 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1777 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) dropped slightly today to US$ 2018 per tonne from US$ 2026 per tonne on Wednesday.
The most-traded SHFE August contract lost more than half the gains from the previous day as expanding shorts weighed it to a low of RMB 13,915 per tonne, before it ended 0.14% lower on the day at RMB 13,930 per tonne yesterday. As longs aggressively loaded up their positions, the August contract recovered from a lower open to close a tad higher at RMB13,985 per tonne overnight. SHFE aluminium recently hovered around RMB 14,000 per tonne level and is expected to trade rangebound between RMB 13,900-14,200 per tonne today. Spot premiums are seen at RMB10-30 per tonne over the June contract. Market focus returned to fundamentals, which remained weak with the upcoming slow season.
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