
Benchmark aluminium price on London Metal Exchange increased further to close at US$2070.5 per tonne on Monday, March 19, up from the previous day’s close at US$2069 per tonne. According to SMM, there will be limited downward room for the US dollar if interest rates increase. This may give little support to LME aluminium to stand firmly at the $2,100 per tonne level. SMM expects the contract to trade at US$2,075-2,100 per tonne today.

As on March 19, LME aluminium cash (bid) price stands at US$ 2070 per tonne, LME official settlement price stands at US$ 2070.50 per tonne; 3-months bid price stands at US$ 2090 per tonne, 3-months offer price is US$ 2092 per tonne; Dec 19 bid price stands at US$ 2138 per tonne, and Dec 19 offer price is US$ 2143 per tonne.
The LME aluminium opening stock has dropped to 1293900 tonnes. Live Warrants totalled at 1056000 tonnes, and Cancelled Warrants were 237900 tonne.
LME aluminium 3-months ABR price is hovering at US$ 2079 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased from US$ 2167 per tonne on March 19 to US$ 2178 per tonne on March 20.
SMM saw a small growth in inventories on Monday and as the five-day moving average rose to the 10-day moving average. The contract is expected to trade at RMB 13,950-14,080 per tonne today. Spot discounts are seen at RMB 160-120 per tonne.
The US dollar edged down to 89.9 as the pound and euro strengthened overnight. SMM expects it to remain rangebound at the current level today. Base metals were on downward trend except for aluminium, which inched up overnight. SMM expects the prices to remain weak in the short term.
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