LME aluminium continued to inch down to $1694.50/t; US dollar recovered from two-week lows

The US dollar recovered from two-week lows against a basket its rivals on Monday, as stronger-than-expected manufacturing data boosted investor sentiment. Fears about the coronavirus, meanwhile, eased after China took measures to cushion the impact of the new epidemic and pledged to do more to contain it and support the country’s financial markets.

Three-month LME aluminium fell for a ninth straight day on Monday, February 3, dropping below $1,700 per tonne to end at $1,696.5 per tonne. It shed 1.65% on the trading day. It is expected to trade between $1,680 per tonne to $ 1,730 per tonne today.

LME aluminium cash (bid) price, on February 3, inched down to US$ 1693.50 per tonne from US$ 1709 per tonne on January 31, while LME official settlement price decreased to US$ 1694.50 per tonne from US$ 1709.5 per tonne. 3-months bid price dropped to US$ 1718.00 per tonne and 3-months offer price to US$ 1719.00 per tonne from US$ 1724 per tonne and US$ 1724.5 per tonne, respectively. Dec 21 bid price stood at US$ 1850.00 per tonne and Dec 21 offer price came in at US$ 1855.00 per tonne.

The LME aluminium opening stock also declined 1272525 tonnes. Live Warrants totalled at 816675 tonnes and Cancelled Warrants 455850 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1726.75per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE (Shanghai Future Exchange) decreased by US$16 per tonne from February 3 to US$1940 per tonne, as of February 4, 2020.

The most-liquid SHFE 2003 contract found pressure from RMB 13,800 per tonne and ended the trading day 3.68% lower at RMB 13,605 per tonne. It once dipped to a-year low of RMB 13,510 per tonne. Virus concerns may keep the contract below RMB 14,000 per tonne this week. Recovery of downstream consumption will be closely monitored.

The most-traded SHFE 2003 contract was likely to move at RMB 13,400 per tonne to RMB 13,800 per tonne.