
The US dollar bounced from a three-month low as investors tempered expectations for aggressive rate cuts by the Federal Reserve. Base metals closed lower for the most part. LME aluminium gained 0.1% and SHFE aluminium edged down.
Three-month LME aluminium retreated after pessimism around macroeconomic development bolstered prices to US$1,838 per tonne, the highest since May 17. It ended at US$1,814.5 per tonne, up 0.06% on the day. LME aluminium is likely to trade at US$1,790-1,840 per tonne.
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As on June 26, Wednesday, LME aluminium cash (bid) price stood at US$ 1802 per tonne, LME official settlement price stands at US$ 1803per tonne; 3-months bid price stands at US$ 1824 per tonne, 3-months offer price is US$ 1825 per tonne; Dec 20 bid price stands at US$ 1940 per tonne, and Dec 20 offer price stands at US$ 1945 per tonne.
The LME aluminium opening stock dropped to 998600 tonnes. Live Warrants totalled at 636900 tonnes, and Cancelled Warrants were 361700 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1810.79 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) increased slightly to US$ 2021 per tonne today from US$ 2020 per tonne on Wednesday.
The most active SHFE August contract hovered in a wide range during the day, closing the trading day higher at RMB13,910 per tonne yesterday. Shorts held back from aggressively building up positions ahead of the Trump-Xi meeting, which deterred SHFE aluminium from sharply falling. The contract failed to stand above the RMB14,000 per tonne level as it stopped rising at RMB13,945 per tonne and finished at RMB13,880 per tonne. The contract is likely to trade at RMB13,800-14,100 per tonne today.
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