
The US dollar returned towards a three-year peak against a basket of currencies on Friday, after a pull-back earlier in the day. The greenback enjoyed its strongest week since the financial crisis last week as a global scramble for funding sent other currencies reeling.
Three-month LME aluminium reversed earlier gains to touch a new low in three years and a half at US$ 1,575 per tonne, shortly before it ended the day sharply lower at US$ 1,577 per tonne. It is likely to move between US$ 1,540 per tonne and US$ 1,620 per tonne today.
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As of Friday, March 20, LME aluminium cash (bid) price continued to stand at US$ 1580 per tonne, while LME official settlement price dipped by US$ 0.50 per tonne come in at 1580.5 per tonne. 3-months bid price slipped from US$ 1606 per tonne to US$ 1603 per tonne, while 3-months offer price from US$ 1607 per tonne to US$ 1605 per tonne. Dec 21 bid price hovered at US$ 1715 per tonne and Dec 21 offer price at US$ 1720 per tonne.
The LME aluminium opening stock also recorded a plunge from 1009100 tonnes to 1069925 tonnes. Live Warrants stood at 904650 tonnes and Cancelled Warrants at 165275 tonnes.
LME aluminium 3-months Asian Reference Price hovered at US$ 1617.77per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE continued to decline from US$ 1681 per tonne to US$ 1598 per tonne, as of Monday, March 23.
The most-active SHFE contract came off after climbing to a session high of RMB 12,165 per tonne, stabilising around RMB 11,935 per tonne and closed the day 0.46 per cent higher at RMB 11,995 per tonne. Amidst high inventories and sluggish demand, weak fundamentals may cap any upside room of near-term aluminium prices.
The most-active SHFE 2005 contract is trading at RMB 11,250 per tonne to RMB 11,800 per tonne. East China spot discounts are seen at RMB 70-40 per tonne against the SHFE 2004 contract.
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