
The US dollar rose to its highest level since August 1 and the dollar index gained close to 0.2% and finished at 98.38 yesterday. LME base metals fell for the most part while SHFE metals closed mostly higher during night trading. SHFE aluminium climbed 0.8% and LME aluminium fell 0.2%.
Three-month LME aluminium retreated after a higher SHFE aluminium drove it to a high of US$1,807.5 per tonne. It returned back below US$1,800 per tonne and ended at US$1,792 per tonne on Monday night, down 0.2% on the day. Today, the contract is likely to trade between US$1,790-1,810 per tonne.
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As on August 19, Monday, LME aluminium cash (bid) price stood at US$ 1762 per tonne, LME official settlement price stands at US$ 1762.50per tonne; 3-months bid price stands at US$ 1794 per tonne, 3-months offer price is US$ 1795 per tonne; Dec 20 bid price stands at US$ 1885 per tonne, and Dec 20 offer price stands at US$ 1890 per tonne.
The LME aluminium opening stock dropped to 962350 tonnes. Live Warrants totalled at 688650 tonnes, and Cancelled Warrants were 273700 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1802 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) has increased to stand at US$ 2040 per tonne today from US$ 2013 per tonne on Monday.
The most traded SHFE October contract climbed to end at RMB 14,395 per tonne yesterday, the highest since October 2018, up 1.27% on the day, as traders loaded up long positions on market talks that an accident occurred at a primary aluminium producer in Xinjiang. The company is yet to report the impact of the accident on its production. Fear of production suspension sent the most-liquid SHFE October contract to a more than a-year high of RMB 14,455 per tonne, before it closed 0.8% higher on the day at RMB 14,390 per tonne overnight. The October contract is likely to trade at RMB 14,300-14,500 per tonne today.
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