LME aluminium dipped to its lowest in a week on Friday; SHFE edged down

LME aluminium touched a low of US$2,263.5 per tonne at one point during the European trading session last Friday. Benchmark aluminium price on London Metal Exchange fell to close at US$ 2273.50 per tonne on Friday, May 11 from US$2327 per tonne on Thursday May 10. SMM expects LME aluminium to trade at US$2,260-2,300 per tonne today.

As on May 11, LME aluminium cash (bid) price stands at US$ 2272.50 per tonne, LME official settlement price stands at US$ 2273.50 per tonne; 3-months bid price stands at US$2274 per tonne, 3-months offer price is US$ 2275 per tonne; Dec 19 bid price stands at US$2218 per tonne, and Dec 19 offer price stands at US$ 2223 per tonne. 

The LME aluminium opening stock stood at 1264250 tonnes. Live Warrants totalled at 860700 tonnes, and Cancelled Warrants were 403550 tonne.

LME aluminium 3-months ABR price is hovering low at US$2292.23 tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange decreased from US$ 2300 per tonne on May 11 to US$ 2288 per tonne on May 14.

According to SMM, The SHFE 1807 contract surged to a high of RMB 14,715 per tonne from a low of RMB 14,630 per tonne last Friday night, but it met strong resistance at the five-day moving average. SMM expects the contract to trade rangebound at RMB 14,550-14,730 per tonne. Spot prices are seen at a discount of RMB 20 per tonne to a premium of RMB 20 per tonne.

The US dollar index fell after rising to a four-month high last week, gaining 0.01% week on week to stand at 92.84 last Friday due to a moderate US consumer price index (CPI).

The US dollar is likely to hover at highs while base metals are expected to maintain the rangebound trend amid mixed trading today.