
The US dollar rebounded and regained most of the ground lost in the previous session, to a nearly three-day high of 96.63, as Brexit concerns weighed on the euro and sterling. Base metals ended mostly lower. LME aluminium fell 1.63% and aluminium went down 0.47%.
LME aluminium fell below support from all moving averages, to a low of US$1,896 per tonne, after the US dollar rebounded. It regained part of the losses as it rose above the five-day moving average and closed at $1,903.5/mt. As the K-indicator tested support from the 40-day moving average, and the MACD red line shortened, LME aluminium is expected to trade at US$1,860-1,950 per tonne today.
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As on March 21, LME aluminium cash (bid) price stood at US$ 1890.50 per tonne, LME official settlement price stands at US$ 1891 per tonne; 3-months bid price stands at US$ 1919.50 per tonne, 3-months offer price is US$ 1920 per tonne; Dec 20 bid price stands at US$ 2048 per tonne, and Dec 19 offer price stands at US$ 2053 per tonne.
The LME aluminium opening stock dropped to 1166100 tonnes. Live Warrants totalled at 753125 tonnes, and Cancelled Warrants were 412975 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1936 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped from US$ 2064 per tonne on March 21 to US$ 2047 per tonne today.
The most active SHFE aluminium May contract hit a new nearly three-month high of RMB 13,840 per tonnes yesterday after SMM reported a decline of some 20,000 tonnes in social inventories of primary aluminium in China for the week ended March 21. As longs took profits, the contract later pared some gains to end at RMB 13,810 per tonne, up 0.36% on the day. The SHFE 1905 contract lost support from longs and dropped to around the 40-day moving average. It is likely to trade at RMB 13,500-13,800 per tonne today with spot premiums at RMB 190-230 per tonne.
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