
The US dollar rebounded from three-month lows, extending gains against the euro and yen, after Federal Reserve Chairman Jerome Powell said that the US central bank intends to further shrink the balance sheet, suggesting it is not done tightening monetary policy. Base metals dipped across the board last night. LME aluminium slipped and SHFE aluminium dipped 0.45%.
Benchmark aluminium price on London Metal Exchange increased to close at US$ 1844 per tonne on Thursday, January 10. LME aluminium consolidated between the five- and 10-day moving average, with a low of US$1,845 per tonne. It is likely to trade at US$1,840-1,875 per tonne today.
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As on January 9, LME aluminium cash (bid) price stood at US$ 1842per tonne, LME official settlement price stands at US$ 1844 per tonne; 3-months bid price stands at US$ 1855 per tonne, 3-months offer price is US$ 1857 per tonne; Dec 19 bid price stands at US$ 2013 per tonne, and Dec 19 offer price stands at US$ 2018 per tonne.
The LME aluminium opening stock increased to 1286050 tonnes. Live Warrants totalled at 1049275 tonnes, and Cancelled Warrants were 236775 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1856.50per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 1971 per tonne today from US$ 1961 per tonne on January 10.
The SHFE 1902 contract settled at RMB13,360 per tonne after shorts dragged it to a low of RMB13,335 per tonne. SMM retains the view that prices will hover at lows ahead of CNY. The trading range today is set at RMB 13,320-13,420 per tonne today, with the biggest spot discounts expected at RMB40 per tonne.
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