LME aluminium closed down yesterday on stronger greenback; SHFE traded rangebound

The US dollar was flat against a basket of other currencies on Wednesday as investors digested a summary of the Federal Reserve’s meeting last month. LME base metals closed mixed on Wednesday. Aluminium dipped 0.03%. The SHFE complex also saw mixed performance overnight. Aluminium declined 0.4%.

Three-month LME aluminium clawed back earlier losses to close a little weaker at US$1,743.5 per tonne on Wednesday. It remained under the 20- and 40-day moving averages. A robust US dollar and previous gains in LME aluminium inventories will keep the contract in a range of US$1,730-1,760 per tonne today.

As on October 9, Wednesday, LME aluminium cash (bid) price stood at US$ 1728.50 per tonne, LME official settlement price stands at US$ 1729 per tonne; 3-months bid price stands at US$ 1738 per tonne, 3-months offer price is US$ 1738.50 per tonne; Dec 20 bid price stands at US$ 1818 per tonne, and Dec 20 offer price stands at US$ 1823 per tonne.

The LME aluminium opening stock increased to 966125 tonnes. Live Warrants totalled at 783800 tonnes, and Cancelled Warrants were 182325 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1743 per tonne.

SHFE Aluminium Price Trend

The most-liquid SHFE November contract fell for the second straight day as loaded-up bearish positions dragged it below RMB 14,000 per tonne and exiting longs depressed it to an intraday low of RMB 13,920 per tonne, before it ended down 0.39% at RMB 13,925 per tonne yesterday. The most traded SHFE 1912 contract held in a tight range of RMB 13,900-13,920 per tonne overnight. It closed down 0.36% at RMB 13,900 per tonne. With a lack of upward momentum, SHFE aluminium is expected to trade between RMB 13,850-13,950 per tonne today. Spot premiums are seen RMB 20-60 per tonne.