
The US dollar lost gains from earlier trades and ended roughly flat on last Friday, after worries tied to trade tensions and a Federal Reserve rate cut weighed on consumer sentiment. LME base metals closed mixed while SHFE metals fell for the most part. LME aluminium gained 0.6% and SHFE aluminium slipped 0.2%.
LME aluminium continued the gains on Friday night it recovered during day’s trading. Three-month LME aluminium gained 0.6% to finish at US$1,795.5 per tonne during Friday night. The contract is likely to trade at US$1,770-1,810 per tonne today.
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As on August 16, Friday, LME aluminium cash (bid) price stood at US$ 1755 per tonne, LME official settlement price stands at US$ 1755.50 per tonne; 3-months bid price stands at US$ 1783.50 per tonne, 3-months offer price is US$ 1784 per tonne; Dec 20 bid price stands at US$ 1873 per tonne, and Dec 20 offer price stands at US$ 1878 per tonne.
The LME aluminium opening stock dropped to 969250 tonnes. Live Warrants totalled at 688650 tonnes, and Cancelled Warrants were 280600 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1782 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) had dropped after overperforming LME last week and stood at US$ 2013 per tonne today from US$ 2023 per tonne on Friday.
The most-active SHFE October contract underperformed its LME counterpart during Friday night and lost 0.2% last Friday night and closed at RMB 14,190 per tonne. This narrowed the SHFE/LME aluminium price ratio to 7.9. Today, the contract is seen hovering between RMB 14,150-14,250 per tonne, with Spot offers are likely at a discount of RMB 30 per tonne to a premium of RMB 10 per tonne.
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