
The US dollar dipped from Monday as America headed to the polls. It closed at 96.27, limited by investor caution about the US midterm elections and potential fallout for the world's largest economy. The pound and euro edged higher on weakness in the greenback.
Weak fundamentals weighed LME aluminium to the lowest since early August last year of US$1,950 per tonne yesterday. Open interests lost 2,083 lost to 675,000 lots. Shanghai Metals Market expects the contract to trade at US$1,940-1,990 per tonne today.
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As on November 6, Tuesday, LME aluminium cash (bid) price stood at US$ 1948 per tonne, LME official settlement price stands at US$ 1950 per tonne; 3-months bid price stands at US$ 1968 per tonne, 3-months offer price is US$ 1969 per tonne; Dec 19 bid price stands at US$ 2028 per tonne, and Dec 19 offer price stands at US$ 2033 per tonne.
The LME aluminium opening stock dropped to 1049700 tonnes. Live Warrants totalled at 733625 tonnes, and Cancelled Warrants were 316075 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1972 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 1994 per tonne today from US$ 2002 per tonne on November 6.
The January contract became the most-traded SHFE aluminium contract yesterday. While the contract gained and traded above the day moving average, it failed to recover all the losses from the previous day. The contract traded in a tight range during the daytime trading hours and is expected to test the five-day moving average tonight. Shorts dragged the SHFE 1901 contract below the daily moving average, to a low of RMB 13,835 per tonne overnight. Lacking effective support below, it is likely to trade at RMB 13,800-13,950 per tonne today.
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