
The dollar notched the largest daily increase in close to seven weeks against a basket of other major currencies on Thursday, boosted by the Federal Reserve's outlook for more rate hikes beyond this year as well as a weakening of the euro on worries about the Italian budget.
LME aluminium was dragged down by its SHFE counterpart and the contract closed lower from the previous day at US$ 2028 per tonne on Thursday. Then it plunged further to a low of US$2,025 per tonne overnight, after it rebounded to US$2,060 per tonne. It settled at that lowest level overnight, with trading range expected at US$2,025-2,045 per tonne today.
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As on September 27, LME aluminium cash (bid) price stands at US$ 2028 per tonne, LME official settlement price stands at US$ 2030 per tonne; 3-months bid price stands at US$ 2051 per tonne, 3-months offer price is US$ 2051.50 per tonne; Dec 19 bid price stands at US$ 2105 per tonne, and Dec 19 offer price stands at US$ 2110 per tonne.
The LME aluminium opening stock dropped further and quicker to 994625 tonnes. Live Warrants totalled at 658250 tonnes, and Cancelled Warrants were 336375 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2048 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2072 per tonne today from US$ 2100 per tonne on September 27.
Rising shorts dragged down the SHFE 1811 contract to a one-month low of RMB 14,350 per tonne near closing yesterday. A higher US dollar and Rusal’s plan to set up a traders’ team in China for the transaction of its aluminium ingot depressed market sentiment. The contract then slumped to a two-month low of RMB 14,275 per tonne and open interests lost 4,030 lots overnight. The contract is likely to hover at lows before the National Day holiday. Its trading range today is set at RMB 14,300-14,400 per tonne, with spot discounts at around RMB 30 per tonne.
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