
The US dollar edged lower as President Donald Trump said in a tweet that the US should match China and Europe’s “currency manipulation game.” The US dollar index slid 0.02% to end at 96.76.
After the day’s trading LME aluminium closed slightly lower from the previous day yesterday. As the US dollar weakened, three-month LME aluminium climbed along with the five-day moving average, to a high of US$1,793 per tonne, ending up 0.53% at US$1,789 per tonne overnight. Three months LME aluminium is likely to trade at US$1,770-1,800 per tonne today.
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As on July 3, Wednesday, LME aluminium cash (bid) price stood at US$ 1754 per tonne, LME official settlement price stands at US$ 1754.50 per tonne; 3-months bid price stands at US$ 1778 per tonne, 3-months offer price is US$ 1779 per tonne; Dec 20 bid price stands at US$ 1890 per tonne, and Dec 20 offer price stands at US$ 1895 per tonne.
The LME aluminium opening stock dropped further to 977750 tonnes. Live Warrants totalled at 636500 tonnes, and Cancelled Warrants were 341250 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1776 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) increased to US$ 1999 per tonne today from US$ 1983 per tonne on Wednesday.
The most traded SHFE August contract recovered some ground to close the trading day 0.22% lower at RMB 13,650 per tonne yesterday as longs added their positions after prices fell to a low of RMB 13,620 per tonne. The August contract then closed 0.66% higher at RMB 13,740 per tonne, after it climbed to the highest overnight at RMB 13,745 per tonne. Trading range today is seen at RMB 13,650-13,800 per tonne.
Market focus turned to expectations of weaker consumption in the third quarter. The contract is expected to continue to hover in a tight range in the short term. The movement is also dependent on the SMM data for social inventories of primary aluminium ingots slated for release on Thursday.
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