
The US dollar extended its rebound on Tuesday, driven by trade and political concerns as well as a strong rise in American consumer confidence. LME base metals closed mixed on Tuesday after the long weekend. Aluminium inched up close to 0.1%. Most SHFE base metals traded lower overnight but aluminium rose 0.2%.
After the holiday on Monday, three-month LME aluminium fluctuated between US$1,799-1,814.5 per tonne on Tuesday and closed 0.08% higher at US$1,803.5 per tonne. LME cash settlement price closed higher on Monday at US$1773 per tonne. Despite an 8,100 tonne decline in aluminium stocks across LME-approved warehouses, LME aluminium is expected to continue its rangebound pattern between US$1,790-1,820 per tonne today as the greenback held firm.
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As on May 28, Monday, LME aluminium cash (bid) price stood at US$ 1772.50 per tonne, LME official settlement price stands at US$ 1773 per tonne; 3-months bid price stands at US$ 1803 per tonne, 3-months offer price is US$ 1804 per tonne; Dec 20 bid price stands at US$ 1920 per tonne, and Dec 20 offer price stands at US$ 1925 per tonne.
The LME aluminium opening stock stood at 1200800 tonnes. Live Warrants totalled at 729100 tonnes, and Cancelled Warrants were 471700 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1803 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2066 per tonne today from US$ 2069 per tonne on Tuesday.
The most-traded SHFE July contract retreated after it jumped to a high of RMB 14,310 per tonne as shorts entered. It slipped to an intraday low of RMB 14,230 per tonne and finished the trading day 0.32% lower at RMB 14,240 per tonne on Tuesday, losing gains accumulated on Monday. The most traded contract then gained 0.21% to trade at RMB 14,295 per tonne overnight, bolstered by long positions. Mexico on Tuesday said that it will launch anti-dumping investigation and impose temporary duties on certain aluminium foil imports from China. This is likely to impact the market today. The SHFE 1907 contract is expected to trade between RMB 14,200-14,300 per tonne today, with spot premiums of up to RMB 30 per tonne.
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