
The US dollar extended its losses on Monday after US President Donald Trump decided to extend a March 1 deadline for additional tariffs on Chinese goods, suggesting progressive trade negotiations between the two countries. LME base metals traded mixed on Monday and aluminium fell 0.6%. Most SHFE base metals pulled back overnight and aluminium closed flat.
LME aluminium contract fell slightly to US$ 1886 per tonne on day’s closing yesterday. The three-month LME aluminium fell from a high of US$1,925 per tonne, which was also the highest in the previous trading day, to end Monday 0.6% lower at US$1,903 per tonne, paring gains in the prior day. Weak fundamentals weighed on LME aluminium, despite losses in the US dollar and gains across metals. The contract is expected to hover in wide range today with most transactions occurring at US$1,890-1,920 per tonne.
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As on February 25, LME aluminium cash (bid) price stood at US$ 1885.50 per tonne, LME official settlement price stands at US$ 1886 per tonne; 3-months bid price stands at US$ 1911 per tonne, 3-months offer price is US$ 1912 per tonne; Dec 19 bid price stands at US$ 2048 per tonne, and Dec 19 offer price stands at US$ 2053 per tonne.
The LME aluminium opening stock decreased to 1235100 tonnes. Live Warrants totalled at 653000 tonnes, and Cancelled Warrants were 582100 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1923 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange slightly dropped to US$ 2051 per tonne today from US$ 2052 per tonne on February 22.
As longs entered, the SHFE 1904 contract shrugged off pressure at the 20-, 10-, and, five-day moving averages to an intraday high of RMB13,790 per tonne yesterday. It closed at RMB 13,770 per tonne, above all moving averages. The most active SHFE April aluminium contract fluctuated to close overnight flat at RMB13,740 per tonne. SHFE aluminium faces uncertainties surrounding costs and consumption. The contract is expected to trade at RMB 13,600-13,800 per tonne today with spot discounts at RMB 100-60 per tonne. Week-on-week higher shipments of primary aluminium and aluminium billet from social warehouses are set to underpin the SHFE contract. However, expanding inventories of primary aluminium will prevent upward room.
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