
Base metals and LME aluminium fell overnight on growing worries over global trade wars. LME aluminium fell to a low of US$ 2,142 per tonne with open interests up 2,702 lots to 672,000 lots. The metal closed lower at US$ 2173 per tonne on Thursday, June 28, from US$ 2204.5 per tonne on Wednesday June 27. Shanghai Metals Market expects it to trade at US$ 2,140-2,170 per tonne today.

As on June 28, LME aluminium cash (bid) price stands at US$ 2172.50 per tonne, LME official settlement price stands at US$ 2173 per tonne; 3-months bid price stands at US$ 2153 per tonne, 3-months offer price is US$ 2155 per tonne; Dec 19 bid price stands at US$ 2275 per tonne, and Dec 19 offer price stands at US$ 2180 per tonne.
The LME aluminium opening stock dropped to 1112025 tonnes. Live Warrants totalled at 893200 tonnes, and Cancelled Warrants were 218825 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2162.34 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2118 per tonne on June 29 from US$ 2123 per tonne on June 28.
The SHFE 1808 contract weakened overnight with the lowest level at RMB14,085 per tonne. SMM expects it to trade at RMB 14,000-14,200 per tonne with spot discount at RMB90-50 per tonne. Key thing to watch today will be trade negotiations between China and the US.
As shorts entered the market, SHFE aluminium touched a low of RMB14,155 per tonne in the morning. SMM expects the contract to stay weakly rangebound in the short term.
The US dollar index closed at 95.3 overnight as the country’s economic growth in the first quarter was slower than previously estimated. Key factors to watch today include Germany’s unemployment rate in June, Eurozone’s CPI in June, US personal consumption expenditures (PCE) price index and personal spending in May.
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