
The US dollar regained losses from the previous five sessions, buoyed by an unexpected increase in US producer price for August. The dollar index gained 0.3% to end at 98.63. President Donald Trump on Wednesday tweeted that he will be delaying the increased tariffs on $250 billion in Chinese goods to October 15 from October 1 as a “gesture of good will” to China. LME base metals closed mostly lower while SHFE metals grew for the most part. LME aluminium fell 0.3% and SHFE aluminium gained 0.2%.
LME aluminium continued trading higher during the day's closing yesterday. Three-month LME aluminium came off from highs overnight as shorts added their positions. It pared gains from the previous two sessions, losing 0.27% to close at US$1,816.5 per tonne. LME aluminium is likely to be trading between US$1,770-1,820 per tonne.
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As on September 11, Wednesday, LME aluminium cash (bid) price stood at US$ 1792 per tonne, LME official settlement price stands at US$ 1792.50 per tonne; 3-months bid price stands at US$ 1822.50 per tonne, 3-months offer price is US$ 1822.50 per tonne; Dec 20 bid price stands at US$ 1892 per tonne, and Dec 20 offer price stands at US$ 1897 per tonne.
The LME aluminium opening stock dropped to 916000 tonnes. Live Warrants totalled at 707400 tonnes, and Cancelled Warrants were 208600 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1822 per tonne.
SME and SHFE Aluminium Price Trend
As shorts took profits and longs added positions, the most traded SHFE 1911 contract crept up to an intraday high of RMB 14,425 per tonne, before it closed 0.24% higher at RMB 14,415 per tonne. Loaded-up longs buoyed the most-traded SHFE November contract to highs around RMB 14,470 per tonne, before it retreated to end slightly higher on the day at RMB 14,415 per tonne overnight. Further declines in domestic primary aluminium inventories may support it at RMB 14,350-14,500 per tonne today.
SHFE aluminium strengthened in a high consumption season. It is expected to test the RMB 14,500 per tonne level, if SMM data due on Thursday show a substantial weekly decline in social inventories of primary aluminium.
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