
The US dollar closed lower against a basket of the currencies on November 16, Friday night. The pound rallied on Friday but remained under heavy pressure as UK Prime Minister Theresa May fought to justify the Brexit deal.
LME aluminium closed the day’s trading at US$ 1914 per tonne on Friday. Weak fundamentals saw LME aluminium unsuccessfully testing pressure around US$1,947 per tonne twice last Friday night. With support below, it rebounded after it dipped below the Bollinger lower band, and settled slightly up on the day at US$1,947 per tonne. The contract is expected to trade within a range of US$ 1,910-1,960 per tonne.
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As on November 16, Friday, LME aluminium cash (bid) price stood at US$ 1913.50 per tonne, LME official settlement price stands at US$ 1914 per tonne; 3-months bid price stands at US$ 1930.50 per tonne, 3-months offer price is US$ 1931.50 per tonne; Dec 19 bid price stands at US$ 2000 per tonne, and Dec 19 offer price stands at US$ 2005 per tonne.
The LME aluminium opening stock rose to 1066350 tonnes. Live Warrants totalled at 764600 tonnes, and Cancelled Warrants were 301750 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1944 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 1980 per tonne today from US$ 1968 per tonne on November 16.
SHFE 1901 contract plunged to a three-day low of RMB 13,695 per tonne on Friday. The contract then recovered those losses to close in the black at RMB 13,760 per tonne. SHFE aluminium weakened last week despite output cuts at primary aluminium producers and the start of winter production curbs across various regions. The contract remained below the five- and 10-day moving averages last Friday night. It received support at RMB 13,730 per tonne and closed at RMB 13,760 per tonne. We expect it to trade at RMB 13,700-13,800 per tonne today with spot discounts likely at RMB 60-20 per tonne today.
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