
The US dollar strengthened on Thursday, with the index against a basket of other currencies hitting the highest since the end of May after a batch of generally positive US economic data. The US dollar index inched up 0.09% to 97.785. LME base metals closed mixed on Thursday. LME aluminium gained 0.1%, and SHFE aluminium advanced 0.5%.
Three-month LME aluminium fluctuated between US$1,818-1,832 per tonne on Thursday, and ended 0.11% higher at US$1,826.5 per tonne. It is expected to trade between US$1,805-1,855 per tonne today.
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As on July 25, Thursday, LME aluminium cash (bid) price stood at US$ 1795 per tonne, LME official settlement price stands at US$ 1795.50 per tonne; 3-months bid price stands at US$ 1823 per tonne, 3-months offer price is US$ 1825 per tonne; Dec 20 bid price stands at US$ 1925 per tonne, and Dec 20 offer price stands at US$ 1930 per tonne.
The LME aluminium opening stock increased yesterday to 987975 tonnes. Live Warrants totalled at 727800 tonnes, and Cancelled Warrants were 260175 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1823 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) increased to US$ 2022 per tonne today from US$ 2005 per tonne on Wednesday.
An unexpected decline in social inventories of primary aluminium eased worries about domestic slow consumption, and pushed up the most-liquid SHFE September contract to a high of RMB 13,895 per tonne yesterday, before it settled at RMB13,890 per tonne, up 0.83% on the day. The SHFE September contract climbed to RMB 13,915 per tonne overnight before it hovered in a tight range around RMB 13,905 per tonne in the rest of trading hours. It gained 0.47% to close at RMB 13,910 per tonne.
The contact has returned above the five-, 10- and 20-day moving averages, and is expected to trade between RMB13,830-13,930 per tonne today, with spot prices at a discount of RMB 20 per tonne to a premium of RMB 20 per tonne. Confidence in longs will continue to support prices in the short term.
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