
The US dollar index rose above 95 with support from robust manufacturing data in the country. Base metals dipped across the board on strengthened US dollar and weaker Chinese manufacturing data. After trading higher for two days, the LME aluminium contract closed lower at US$ 2153 per tonne yesterday June 2 from US$ 2183 per tonne on June 29. Last night, LME aluminium tested support at the Bollinger lower bands and touched a low of US$2,098 per tonne near closing. Shanghai Metals Market expects the contract to trade at US$2,095-2,125 per tonne today.

As on July 2, LME aluminium cash (bid) price stands at US$ 2152per tonne, LME official settlement price stands at US$ 2153 per tonne; 3-months bid price stands at US$ 2129 per tonne, 3-months offer price is US$ 2129.50 per tonne; Dec 19 bid price stands at US$ 2152 per tonne, and Dec 19 offer price stands at US$ 2157 per tonne.
The LME aluminium opening stock increased to 1107400 tonnes. Live Warrants totalled at 901175 tonnes, and Cancelled Warrants were 206225 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2116 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2068 per tonne on July 3 from US$ 2096 per tonne on July 2.
The SHFE 1808 contract fell below RMB 14,000 per tonne level yesterday. The SHFE 1808 contract fell slower than its LME counterpart last night and closed at RMB 13,965 per tonne when investors covered their shorts. However, the contract is expected to trade at RMB 13,850-14,020 per tonne with spot discounts at RMB 90-50 per tonne today amid pessimistic outlook on macroeconomy and fundamentals.
Key factors to watch today include the eurozone retail sales data, the US durable goods orders and factory orders in May.
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