
The US dollar index extended its decline overnight and closed at 93.44. LME aluminium is on a higher range this week with the consolidation of the US dollar. LME aluminium contract closed higher at US$ 2331per tonne on June 7 from US$ 2317.50 per tonne on June 6. The contract dropped close to 2% among several moving averages overnight. Shanghai Metals Market expects it to hover between the 20- and 40-day moving averages today and trade at US$2,280-US$2,310 per tonne.

As on June 7, LME aluminium cash (bid) price stands at US$ 2330.50 per tonne, LME official settlement price stands at US$ 2331per tonne; 3-months bid price stands at US$ 2336 per tonne, 3-months offer price is US$ 2337 per tonne; Dec 19 bid price stands at US$ 2325 per tonne, and Dec 19 offer price stands at US$ 2330 per tonne.
The LME aluminium opening stock slightly dropped to 1180175 tonnes. Live Warrants totalled at 939075 tonnes, and Cancelled Warrants were 241100 tonne.
LME aluminium 3-months ABR price is hovering at US$ 2345.47 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2301 per tonne on June 7 from US$ 2315 per tonne on June 6.
SHFE 1807 contract hovered above the daily moving average in the morning, and surged to a high of RMB 15,020 per tonne in the afternoon yesterday. Longs grew on concerns of potential self-regulatory measures on power plants in China. The SHFE 1808 contract touched a low of RMB 14,865 per tonne overnight. SMM expects it to trade at RMB 14,750-15,000 per tonne today with spot discounts at RMB 60-20 per tonne.
Key factors to watch today include China's trade balance in May, the US wholesale inventories in April as well as the G7 Summit. In the short term, the US dollar is likely to continue its weak and rangebound pattern while base metals are expected to continue their ranegbound pattern.
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