
The US dollar index inched up on Tuesday with the fall of euro. LME and SHFE base metals traded higher across the board after a "very good" telephone conversation between Donald Trump and Xi Jinping on Tuesday night. LME aluminium gained 1.1% on Monday and SHFE aluminium advanced 0.6% overnight.
LME aluminium closed higher at US$ 1733 per tonne yesterday after two consecutive losses. Three-month LME aluminium advanced 1.11% to end at US$1,778 per tonne on Tuesday, just below the 20-day moving average. It is expected to test resistance at US$1,800 per tonne today, and trade between US$1,770-1,820 per tonne.
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As on June 18, Tuesday, LME aluminium cash (bid) price stood at US$ 1732 per tonne, LME official settlement price stands at US$ 1733 per tonne; 3-months bid price stands at US$ 1761 per tonne, 3-months offer price is US$ 1763 per tonne; Dec 20 bid price stands at US$ 1873 per tonne, and Dec 20 offer price stands at US$ 1878 per tonne.
The LME aluminium opening stock dropped to 1046850 tonnes. Live Warrants totalled at 680825 tonnes, and Cancelled Warrants were 366025 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1762 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) increased to US$ 2009 per tonne today from US$ 1995 per tonne on Tuesday.
The most-traded SHFE August contract moved away from the five-day moving average as pressure from shorts lowered it below the daily moving average to an intraday low of RMB 13,780 per tonne. It lost 0.11% on the day and finished at RMB 3,810 per tonne yesterday. The August contract then crept up 0.58% to close at RMB 13,875 per tonne overnight. It is expected to extend its gains today; with a trading range of RMB13,800-14,100 per tonne. Spot premiums are seen up to RMB 20 per tonne over the July contract.
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