
The US dollar index rose slightly on Thursday morning, after touching its lowest since May 1 at 99.0014 overnight.
Three-month LME aluminium resumed its rally on Wednesday, gaining 1.78 per cent to end at a three-week peak of US$ 1,515 per tonne. Optimism surrounding economic recovery is expected to bolster LME aluminium to US$1,490-1,530 per tonne today.
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As of Wednesday, May 20, both LME aluminium cash (bid) price and LME official settlement price decreased from US$ 1464 per tonne on May 19 to US$ 1454 per tonne. 3-months bid price and 3-months offer price declined from US$ 1498 per tonne to US$ 1486.50 per tonne. Dec 21 bid price and Dec 21 offer price stood at US$ 1610.50 per tonne, compared to US$ 1623.50 per tonne on the previous day.
The LME aluminium opening stock increased from 1436575 tonnes to 1466625 tonnes on May 20. Live Warrants totalled at 1241225 tonnes, and Cancelled Warrants 225400 tonnes.
LME aluminium 3-months Asian Reference Price hovered at US$ 1492.69 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE extended decline from US$ 1862 per tonne to US$ 1852.89 per tonne on Thursday, May 21.
The most-liquid SHFE July contract climbed for the sixth straight day as it recovered overnight losses and hit a session high of RMB 12,935 per tonne, before finishing at RMB 12,875 per tonne. It held above all moving averages, but pressure remained from RMB 13,000 per tonne. It is expected to continue to test resistance above from the Bollinger upper band tonight.
The most active SHFE July contract advanced 0.66 per cent to end at its highest in more than two months at RMB 12,955 per tonne in overnight trading. Firm spot premiums and falling inventories will remain supportive of the July contract, which is expected to move at RMB 12,800-13,200 per tonne today.
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