
After registering a temporary gain on March 28, LME Aluminium contract dropped from US$2035 per tonne on Tuesday March 27 as US dollar index rose to 90 and finally closed at US$2009 per tonne on Tuesday March 28. Shanghai Metals Market expects the contract to trade at US$2,020-2,043 per tonne today.

As on March 27, LME aluminium cash (bid) price stands at US$ 2008 per tonne, LME official settlement price stands at US$ 2009 per tonne; 3-months bid price stands at US$ 2027 per tonne, 3-months offer price is US$ 2029 per tonne; Dec 19 bid price stands at US$ 2087 per tonne, and Dec 19 offer price is US$ 2092 per tonne.
The LME aluminium opening stock has dropped to 1261625 tonnes. Live Warrants totalled at 996500 tonnes, and Cancelled Warrants were 265125 tonne.
LME aluminium 3-months ABR price is hovering low at US$ 2034.44per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange gained slightly from US$ 2175 per tonne on March 27 to US$ 2185 per tonne on March 28, with the pickup of downstream demand.
As reported by SMM a total of 18,000 lots of short positions were added to SHFE aluminium at the start of the trading session last night. Prices showed restraint despite the presence of bearish sentiments. A narrowed spread indicated a potential shift from contango to backwardation. SMM expects the main SHFE aluminium contract to trade at RMB 13,640-13,820 per tonne today and spot discounts will range at RMB 130-90 per tonne. Following is the SHFE aluminium price movement on March 29, as updated by shfe.com.

The US dollar index rose to 90 given the inflow of month-end capital and as concerns of a trade war eased. Positive economic data from the US released overnight also buoyed the index. We expect it to stay rangebound in the short term. Base metals were weak, and are likely to remain rangebound in the short term.
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