
With the US dollar index falling amid North Korea jitters, LME aluminium recovered some strength and rose higher from its earlier close of US$2,069.50 per tonne to US$2,075 per tonne on Thursday, September 7. Reuters’ technical analysis suggests that LME aluminium may revisit US$2,145 per tonne as its correction from this level seems to have reached completion.
According to Shanghai Metals Market forecast, the light metal contract is likely to hold firm at US$2,095-2,120 per tonne on Friday, September 8, on technical support and weak dollar.
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As on September 7, LME official cash buyer aluminium price (Bid Price) stands at US$2,074 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,075 per tonne, 3M Bid Price is US$2,095.50 per tonne, 3M Offer Price is US$2,096.50 per tonne, Dec3 Bid Price is US$2,215 per tonne, and Dec3 Offer Price is US$2,220 per tonne. LME aluminium Opening Stock stands at 1321375 tonnes, total Live Warrants is 1152900 tonnes, and Cancelled Warrant is 168475 tonnes.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price at Shanghai Metal Exchange (SME) has inched up from US$2,467 per tonne on Thursday, September 7, to US$2,473 per tonne on Friday, September 8.
At Shanghai Futures Exchange, base metals mostly ended lower as price divergence widened. SMM predicts that the most active aluminium contract SHFE 1711 aluminium will find support from a stronger yuan but will be weighed down at RMB 16,000-16,290 per tonne on Friday, September 8, due to growing panic from the continuous declines.
In east China spot aluminium market, spot discounts over SHFE 1709 aluminium are expected to range at RMB 120-80 per tonne on Friday.
The LME announced Thursday that it will reduce short- and medium-dated carry trade fees from October 1.The move is aimed to support its physical user base and encourage the use of its daily date structure, SMM updated. Further, the bourse also intends to introduce a new financial OTC fee, effective from 1 January, 2018, in order to ensure fairness in LME fee structures, the exchange added.
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