LME aluminium price climbed up to US$1689/t amidst the biggest gain of US dollar in last three years

The US dollar rebounded on Tuesday after consecutive days of major losses, as signs of global policy easing to cushion the economic impact from the COVID-19 epidemic eased some of the investors’ concerns. The dollar index, which tracks the greenback against a basket of other currencies, climbed to the highest level this week at 96.6 and recorded the biggest gain in the past three years.

Three-month LME aluminium climbed to an intraday high of US$ 1,714 per tonne on a rebound in crude oil prices and finished the day 0.77 per cent higher at US$ 1,702 per tonne. The trading range is expected between US$1670 per tonne and US$ 1720 per tonne today.

After continuing decline till Monday, LME aluminium cash (bid) price on Tuesday, March 10, recorded a significant growth of US$ 45.5 per tonne to stand at US$ 1688.5 per tonne. LME official settlement price came in at US$ 1689 per tonne, registering an increase by the same amount. 3-months bid price stood at US$ 1708 per tonne, while 3-months offer price at US$ 1708.5 per tonne. Dec 21 bid price hovered at US$ 1820 per tonne and Dec 21 offer price at US$ 1825 per tonne.

The LME aluminium opening stock, however, continued to decline to 1010025 tonnes from 1019950 tonnes on the previous day. Live Warrants remained restrained at 797800 tonnes but Cancelled Warrants dropped from 222150 tonnes to 212225 tonnes.

LME aluminium 3-months Asian Reference Price inched up to US$ 1691.50 per tonne from US$ 1662 per tonne on March 9.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE declined to US$ 1849 per tonne on Tuesday, March 10, from US$1,852 per tonne on March 9.

The most-active SHFE 2005 contract reversed an earlier slip to an intraday high of RMB 13,045 per tonne in early afternoon trade. It later eased to end at RMB 12,985 per tonne.

The most-traded SHFE contract is hovering between RMB 12,850 per tonne and RMB 13,100 per tonne.