
The US dollar rebounded with foreign exchange traders holding off from making big moves as they awaited definitive news out of the trade talks between the US and China which resume on Thursday. Base metals ended mostly lower and LME aluminium fell almost 1.1% and SHFE aluminium closed 0.4% lower.
Compared with the SHFE 1906 contract, three months LME aluminium felt a greater impact from macroeconomic pessimism, as it lost 1.05% overnight and finished at US$1,799 per tonne, with a low of US$1,793 per tonne. It is seen trading between US$1,750-1,800 per tonne today.
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As on May 8, LME aluminium cash (bid) price stood at US$1760.50 per tonne, LME official settlement price stands at US$ 1761 per tonne; 3-months bid price stands at US$ 1798 per tonne, 3-months offer price is US$ 1800 per tonne; Dec 20 bid price stands at US$ 1918 per tonne, and Dec 20 offer price stands at US$ 1923 per tonne.
The LME aluminium opening stock stood at 1275200 tonnes. Live Warrants totalled at 886725 tonnes, and Cancelled Warrants were 388475 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1823 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2050 per tonne today from US$ 2069 per tonne on May 7.
The most traded SHFE June contract broke the 20-day moving average to end the trading day 0.39% higher at RMB14,045 per tonne yesterday. The SHFE June contract is expected to trade at RMB13,900-14,000 per tonne. Fundamentals will cap any decline in the contract today. Spot premiums are likely at RMB 20-40 per tonne. The contract is expected to continue to recover from Monday’s drop tonight.
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