
The US dollar rose for the third consecutive trading day and jumped to the highest since March 11, at 97.3 last night. Base metals ended mixed. LME aluminium gained while SHFE aluminium went down slightly.
LME aluminium closed Thursday's trading lower at US$ 1896.50 per tonne and rebounded and ended 0.11% higher overnight after it fell below support from the 40- and 60- day moving averages, to a low of US$1,896 per tonne. The contract is likely to trade at US$1,870-1,930 per tonne today.
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As on March 28, LME aluminium cash (bid) price stood at US$ 1895.50 per tonne, LME official settlement price stands at US$ 1896.50 per tonne; 3-months bid price stands at US$ 1911.50 per tonne, 3-months offer price is US$ 1912 per tonne; Dec 20 bid price stands at US$ 2040 per tonne, and Dec 20 offer price stands at US$ 2045 per tonne.
The LME aluminium opening stock dropped to 1134950 tonnes. Live Warrants totalled at 725200 tonnes, and Cancelled Warrants were 409750 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1906 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased slightly from yesterday to US$ 2034 per tonne today.
The most liquid SHFE 1905 contract traded rangebound to close the trading at RMB 13,685 per tonne, up 0.44% on the day. The SHFE 1905 contract then rallied to the five- and 20- day moving averages after shorts dragged it to a low of RMB13,655 per tonne. It is expected to trade at RMB 13,500-13,800 per tonne today, Spot premiums are seen at RMB 250-290 per tonne.
Tight bauxite supplies lowered operating alumina capacity and supported domestic alumina prices. SMM reported on Thursday that social inventories of primary aluminium ingots in China shrank 56,000 tonnes in the week ended March 28, showing signs of recovering consumption. Those factors lifted up aluminium prices. The SHFE 1905 contract is expected to remain firm in the short term.
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