
LME aluminium had been on a higher range last week with the consolidation of the US dollar. The aluminium contract closed the week lower at US$ 2287.50 per tonne on June 8 from US$ 2331 per tonne on June 7. The contract returned to the five and 40 days moving averages and Shanghai Metals Market expects it to trade at US$2,290-2,340 per tonne today.

As on June 8, LME aluminium cash (bid) price stands at US$ 2287per tonne, LME official settlement price stands at US$ 2287.50 per tonne; 3-months bid price stands at US$ 2299 per tonne, 3-months offer price is US$ 2299.50 per tonne; Dec 19 bid price stands at US$ 2297 per tonne, and Dec 19 offer price stands at US$ 2302 per tonne.
The LME aluminium opening stock slightly dropped to 1175225 tonnes. Live Warrants totalled at 939325 tonnes, and Cancelled Warrants were 235900 tonne.
LME aluminium 3-months ABR price is hovering at US$ 2300 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2297 per tonne on June 11 from US$ 2301 per tonne on June 8.
The SHFE 1808 contract touched a low of RMB 14,765 per tonne as investors cut their longs on uncertainty over China’s regulation on power plants and finally closed at RMB 14,835 per tonne on Friday. The SHFE 1808 contract became the most traded contract last Friday night. The contract hit a high of RMB 14,970 per tonne but met strong resistance at the RMB 15,000 tonne level. It then traded rangebound and touched a low of RMB 14,875 per tonne before closure as some investors exited the market. SMM expects it to trade at RMB 14,800-15000 per tonne today with spot discounts at RMB 50-10 per tonne.
The US dollar index fell 0.7% over the past week to close at 93.5 last Friday. Key factor to watch today is China's financial data in May, including social financing, new loans and M2 money supply.
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