
The US dollar index weakened but remained at high levels around 94 with support from robust US data on employment and the PCE price index. The LME aluminium contract recovered from the 40-day moving average and closed at US$2285.50 per tonne on May 31 from US$2265.5 per tonne on previous closing. LME aluminium climbed all the way up to a high of US$2,304 per tonne last night with the weakening US dollar. It is likely to test the pressure today and trade at US$2,285-2,310 per tonne.

As on May 31, LME aluminium cash (bid) price stands at US$ 2285 per tonne, LME official settlement price stands at US$ 2285.50 per tonne; 3-months bid price stands at US$ 2285 per tonne, 3-months offer price is US$ 2286 per tonne; Dec 19 bid price stands at US$ 2260 per tonne, and Dec 19 offer price stands at US$ 2265 per tonne.
Currently, 3 months LME aluminium and LME cash price settle in the same range with the easing out of supply concerns.
The LME aluminium opening stock slightly dropped to 1205875 tonnes. Live Warrants totalled at 932825 tonnes, and Cancelled Warrants were 273050 tonne.
LME aluminium 3-months ABR price is hovering at US$ 2269.39tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2260 per tonne on June 1 from US$ 2278 per tonne on May 31.
As shorts flooded the market, the SHFE 1807 contract tumbled to a low of RMB 14,635 per tonne yesterday. The SHFE 1807 contract received support from longs after dipping to a low of RMB 14,550 per tonne last night. Due to concerns over an intensified US-Sino trade war, the contract is expected to trade at RMB 14,550-14,700 per tonne with spot discounts at RMB 80-40 per tonne.
Shanghai Metals Market sees the contract remaining range bound given a lack of new developments for directions. High prices of alumina will provide some support but there will be pressure as consumption remains at current levels.
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