
The US dollar weakened Thursday, partly due to a buoyant British pound that was trading higher on the back of better-than-expected economic data. The pound has risen against the US dollar to hit a two-month high at 1.3288.
LME aluminium settled 1.31% higher at US$2,056.5 per tonne after rising to a high of US$2,061 per tonne as the US dollar slid. Shanghai Metals Market sees limited downward room for the aluminium price with support from high costs of raw materials and falling inventories. LME aluminium will attempt to stand firm above the 20-day moving average, and trade at US$2,050-2,065 per tonne today.
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As on September 20, LME aluminium cash (bid) price stands at US$ 2018 per tonne, LME official settlement price stands at US$ 2018.50 per tonne; 3-months bid price stands at US$ 2046 per tonne, 3-months offer price is US$ 2048 per tonne; Dec 19 bid price stands at US$ 2088 per tonne, and Dec 19 offer price stands at US$ 2093 per tonne.
The LME aluminium opening stock dropped to 1030200 tonnes. Live Warrants totalled at 719600 tonnes, and Cancelled Warrants were 310600 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2030 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increases slightly to US$ 2145 per tonne today from US$ 2124 per tonne on September 20.
The SHFE 1811 contract climbed to an intraday high of RMB 14,585 per tonne before long covering dragged it to RMB 14,530 per tonne yesterday. It then rebounded again to close at RMB 14,575 per tonne. The contract has closed higher than open prices for three consecutive days. Trading range for the SHFE 1811 contract is set at RMB 14,600-14,720 per tonne today with spot offers at a discount of RMB 20 per tonne to a premium of RMB 20 per tonne. We expect it to upwardly test the five- and 10-day moving averages.
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