
The US dollar index weakened and fell below 98 as traders awaited more data to decide whether to add to their bullish positions in the greenback. Most major currencies remained in tight ranges and traded lightly as Japan began its 10-day Golden Week holiday. China will have its Labour Day holiday from Wednesday to Friday. LME base metals ended mixed and aluminium slid 1%. SHFE metals closed higher and aluminium gained 0.2%.
As aluminium inventories across LME warehouses expanded some 48,000 tonnes, LME aluminium slid to the lowest since mid-January, at US$1,826 per tonne. It ended lower for the fourth consecutive trading day, at US$1,828 per tonne. It is likely to trade weakly between US$1,810-1,850 per tonne today.
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As on April 29, LME aluminium cash (bid) price stood at US$ 1815 per tonne, LME official settlement price stands at US$ 1816 per tonne; 3-months bid price stands at US$ 1831 per tonne, 3-months offer price is US$ 1831.50 per tonne; Dec 20 bid price stands at US$ 1953 per tonne, and Dec 20 offer price stands at US$ 1957 per tonne.
The LME aluminium opening stock stood at 1069075 tonnes. Live Warrants totalled at 696975 tonnes, and Cancelled Warrants were 372100 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1839 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2106 per tonne today from US$ 2104 per tonne on April 26.
The most traded SHFE June contract reversed Friday night losses to finish the trading day 0.21% higher at RMB 14,225 per tonne. SMM data showed that social inventories of primary aluminium in China continued to fall and declined 43,000 tonne over the weekend, mostly driven by improving consumption and pre-holiday stockpiling. The June contract stemmed decline at RMB 14,160 per tonne after longs exited, and settled above all moving averages at RMB 14,195 per tonne. It is seen trading at RMB 14,150-14,250 per tonne today with spot offers at a discount of RMB 30 per tonne to a premium of RMB 10 per tonne. SHFE aluminium is expected to consolidate at highs in the short term.
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