
The US dollar index after rallying for almost a week now suffered its worst decline on Thursday, February 16, lifting LME aluminium price up by 0.37 per cent. The contract which stood at US$1,871 per tonne on Wednesday down from Tuesday's US$1,893 per tonne, closed higher at US$1,878 per tonne after Thursday's night trading. Shanghai Metals Market (SMM) in its forecast says LME aluminium will hover at US$1,890-1,916 per tonne on Friday, February 17.
As on February 16, LME official cash buyer price of aluminium stands at US$1,877 per tonne, cash seller & settlement price is US$1,878 per tonne, 3M buyer price is US$1,891.50 per tonne, 3M seller price is US$1,892 per tonne, Dec1 buyer price is US$1,935 per tonne, and Dec1 seller price is US$1,940 per tonne. The current LME official Opening Stock of aluminium is estimated at 2208050 tonnes, total Live Warrants is 1599725 tonnes, and Cancelled Warrant is 608325 tonnes.
In China, the benchmark price of aluminium on Shanghai Metal Exchange (SME) stands at US$2,037 per tonne on Friday, down 1.45 per cent from Thursday's price of US$2,067 per tonne.
Aluminium contracts traded on Shanghai Futures Exchange (SHFE) got little boost from bottoming out of the dollar index. SHFE 1704 aluminum after opening at RMB 14,500 per tonne, closed down at RMB 14,365 per tonne on Thursday. SMM predicts the contract will move at RMB 14,200-14,500 per tonne on Friday.
Spot aluminium in China's domestic market is expected to trade at discounts of RMB 200-180 per tonne on Friday.
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Key base metal prices including that of aluminium in Shanghai major markets are expected to keep diverging on Friday.
“The dollar is expected to trade weakly before Trump’s detailed plan for tax, regulation easing and infrastructure spending, and Shanghai base metal prices are estimated to diverge further,” SMM predicts.
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