
The US dollar strengthened against a basket of other currencies on Tuesday as investors monitored the latest news around US-China trade talks and digested comments from the top Federal Reserve official. LME base closed lower on Tuesday and aluminium fell 0.4%. The SHFE complex also traded mostly lower overnight. Aluminium inched up.
Three-month LME aluminium on Tuesday climbed to a high of US$1,760 per tonne, the highest in nearly two weeks, before it gave back all those gains to finish the trading day 0.4% lower at US$1,744 per tonne, below the 20-day moving average. Rising LME inventories pressured aluminium prices. The contract is expected to move between US$1,730-1,760 per tonne today.
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As on October 8, Tuesday, LME aluminium cash (bid) price stood at US$ 1731.50 per tonne, LME official settlement price stands at US$ 1732 per tonne; 3-months bid price stands at US$ 1738 per tonne, 3-months offer price is US$ 1738.50 per tonne; Dec 20 bid price stands at US$ 1818 per tonne, and Dec 20 offer price stands at US$ 1823 per tonne.
The LME aluminium opening stock increased to 965575 tonnes. Live Warrants totalled at 787125 tonnes, and Cancelled Warrants were 178450 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1746 per tonne.
SHFE Aluminium Price Trend
Shanghai Futures Exchange (SHFE) has started trading from yesterday after the week long National Day holiday.
The load-up of long positions shored up the most traded SHFE 1912 contract to a high of RMB 14,020 per tonne overnight, before moving averages pressured the contract to give back most of those gains to close a tad higher at RMB 13,960 per tonne. Backwardation on SHFE aluminium reflected limited steam in the 1912 contract. The contract is expected to trade between RMB 13,900-14,100 per tonne today.
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