
The US dollar fell against its rivals on Tuesday, as investors were wary of a looming deadline for US tariffs on China. LME base metals, except for aluminium closed higher on Tuesday. SHFE aluminium gained 0.2%. Three-month LME aluminium erased earlier gains to close down 0.43% at US$1,753 per tonne on Tuesday. The buildup of short positions primarily accounted for the decline. LME aluminium is expected to hover between US$1,740-1,780 per tonne today.

As on December 10, Tuesday, LME aluminium cash (bid) price stood at US$ 1749 per tonne, LME official settlement price stands at US$ 1750 per tonne; 3-months bid price stands at US$ 1752 per tonne, 3-months offer price is US$ 1752.50 per tonne; Dec 20 bid price stands at US$ 1812 per tonne, and Dec 20 offer price stands at US$ 1817 per tonne.
The LME aluminium opening stock increased again to 1303975 tonnes. Live Warrants totalled at 1162450 tonnes, and Cancelled Warrants were 141525 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1762 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE (Shanghai Future Exchange) increased to US$ 2002 per tonne on Wednesday, December 11, 2019.
Upbeat macroeconomic sentiment and domestic pre-holiday stockpiling propped up the aluminium market, as the most-traded SHFE 2001 contract gained for the second consecutive day and closed 0.79% higher at RMB 13,990 per tonne. The SHFE 2002 contract gained 0.2% to RMB 13,890 per tonne overnight, primarily driven by the load-up of long positions. Despite declining costs, robust consumption fuelled market confidence. The market remains sensitive to changes in inventories of primary aluminium and aluminium billets. SHFE aluminium is expected to waver between RMB 13,860-14,000 per tonne today, with spot premiums of RMB 30-50 per tonne over the SHFE 1912 contract.
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