
The US dollar index rose to the highest thus far this year on Tuesday, amid growing signs the US economy is outperforming its peers. US consumer confidence rose to an 18-year high in October, driven largely a robust labour market, suggesting strong economic growth could persist in the near term. Most LME and SHFE base metals ended in negative territory overnight. LME aluminium slid some 0.7%.
LME aluminium fluctuated and closed Tuesday's trading at US$ 1952 per tonne, the lowest since August 8, 2017. It recovered some losses and closed the night trading at US$1,965 per tonne. Shanghai Metal Market expects it to trade at US$1,960-1,990 per tonne today.
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As on October 30, Tuesday, LME aluminium cash (bid) price stood at US$ 1951per tonne, LME official settlement price stands at US$ 1952 per tonne; 3-months bid price stands at US$ 1972 per tonne, 3-months offer price is US$ 1972.50per tonne; Dec 19 bid price stands at US$ 2027 per tonne, and Dec 19 offer price stands at US$ 2032 per tonne.
The LME aluminium opening stock increased to 1048825 tonnes. Live Warrants totalled at 725725 tonnes, and Cancelled Warrants were 323100 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1982 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2010 per tonne today from US$ 2015 per tonne on October 29.
Slower declines in domestic social inventories weighed on the SHFE 1812 contract after its initial increase on Monday. It closed at RMB14,085 per tonne after falling to an intraday low of RMB 14,080 per tonne. The SHFE 1812 contract then opened lower and fell to the lowest in close to one week at RMB 14,040 per tonne overnight. Despite the negative start, the contract climbed to session-highs of RMB 14,130 per tonne before it reversed most of those gains to end at RMB 14,065 per tonne. We expect it to trade at RMB14,000-14,130 per tonne today with spot discounts at RMB 70-30 pe tonne.
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