
The US dollar index fell from one year's high and closed at 95.09, slightly up from Wednesday. Base metals dipped across the board on ongoing trade conflicts between China and the US.
After diving down the day before, LME aluminium contract closed a little higher at US$ 2062 per tonne yesterday. The contract tested support at US$2,000 per tonne twice and touched a low of US$2,001.5 per tonne while base metals weakened across the board. It closed at US$2,006 per tonne last night. With LME inventory up 5,100 tonnes to 1,203,975 million tonne, Shanghai Metals Market expects it to test support again at the US$2,000 per tonne level, and trade at US$1,990-2,020 per tonne over the day.
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As on July 19, LME aluminium cash (bid) price stands at US$ 2060 per tonne, LME official settlement price stands at US$ 2062 per tonne; 3-months bid price stands at US$ 2024 per tonne, 3-months offer price is US$ 2025 per tonne; Dec 19 bid price stands at US$ 2092 per tonne, and Dec 19 offer price stands at US$ 2097 per tonne.
The LME aluminium opening stock increased to 1203975 tonnes. Live Warrants totalled at 1048450 tonnes, and Cancelled Warrants were 155525 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2022 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2048 per tonne on July 20, from US$ 2075 per tonne on July 19.
On July 19, longs increased after opening and buoyed the SHFE 1809 contract to a high of RMB 14,145 per tonne after opening but the contract met resistance at the 20-day moving average. It declined gradually in the afternoon as the US dollar strengthened, and closed at RMB 14,065 per tonne, up RMB 25 per tonne from Wednesday. The contract hovered within a narrow range after it jumped to a high of RMB 14,095 per tonne today morning. Its trading range is seen at RMB 14,000-14,100 per tonne today with spot discounts at 90-50 per tonne.
Light economic data are expected today as the market watches out for further movement in metals prices.
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