
The US dollar index recovered to 97 on Friday from a month-low on Thursday after the Federal Reserve signalled fewer interest rate hikes over the next two years and expressed caution about the US economic outlook. LME base metals, except for tin, traded lower on Friday with aluminium fell 0.4%. SHFE aluminium inched up 0.1%.
The LME aluminium contract closed Friday’s trading at US$ 1920 per tonne, from US$ 1923.50 per tonne on Thursday, December 20. LME aluminium fell to close at US$1,907 per tonne on Friday night as the US mulled lifting Rusal sanctions. SMM expects the metal to trade at US$1,890-1,920 per tonne today.
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As on December 21, LME aluminium cash (bid) price stood at US$ 1919 per tonne, LME official settlement price stands at US$ 1920 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$ 1975 per tonne, and Dec 19 offer price stands at US$ 1980 per tonne.
The LME aluminium opening stock increased to 1265250 tonnes. Live Warrants totalled at 1048550 tonnes, and Cancelled Warrants were 216700 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1917.95 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 1974 per tonne today from US$ 1970 per tonne on December 21.
The SHFE 1902 contract initially rose to a high of RMB13,780 per tonne on Friday night as longs added their positions. It then fell to close at RMB13,725 per tonne, above the five-day moving average, as longs were keen to take profits at the 40-day moving average.
China aluminium producers met last week to discuss production cuts, which provided support to SHFE aluminium prices. The contract is expected to trade at RMB13,700-13,800 per tonne today with spot discounts at RMB80-40 per tonne.
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