With speculations rife on dwindling aluminium and its raw material supplies from China, LME aluminium kept surging higher on Thursday, October 26, and closed at US$2,175 per tonne, up from its previous close at US$2,149.50 per tonne on Wednesday, October 25. The biasness towards and upside was so strong that even a stronger dollar could not weigh on it.
To note, the U.S. Dollar Index DXY, +0.14 per cent which tracks the currency’s performance against six major currencies, was one per cent higher at 94.683, hitting its loftiest level since mid-July, MartketWatch reported.
{alcircleadd}Price trend suggests that LME aluminium will continue to trade at highs in the near term.
As on October 26, LME official cash buyer aluminium price (Bid Price) stands at US$2,174 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,175 per tonne, 3M Bid Price is US$2,187 per tonne, 3M Offer Price is US$2,188 per tonne, Dec1 Bid Price is US$2,230 per tonne, and Dec1 Offer Price is US$2,235 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1191550 tonnes, total Live Warrants is 928800 tonnes, and Cancelled Warrant is 262750 tonnes.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange has dropped from US$2,452 per tonne on October 26, to US$2,436 per tonne on October 27.
Aluminium prices at Shanghai Futures Exchange (SHFE) traded as below on Thursday, October 26:
Base metals traded on Shanghai Futures Exchange showed a mixed trend on Thursday’s night trading. SHFE aluminium registered a drop unlike its counterpart in London. Shanghai Metals Market forecasts that the light metal contract will continue to show divergence from LME aluminium and trade in the range of RMB 16,450-16,650 per tonne on Friday, October 27.
The Chinese yuan (RMB) fell significantly against the US dollar over the past five weeks. The central parity of the yuan was 6.6473 against the US dollar on October 27, versus 6.6288 October 26. The yuan closed at 6.6357 on October 26, and 6.6435 in the evening session, SMM reported.
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