
The US dollar gained on Thursday, June 11 as US stocks plunged amid reduced expectations that the global economy would recover swiftly from the coronavirus pandemic, following Wednesday’s economic outlook from the Federal Reserve.
The three-month LME aluminium declined, closing the day 2.03 per cent lower at US$ 1,594 per tonne.
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On Thursday, June 11, both LME aluminium cash (bid) price and LME official settlement price declined sharply by US$ 31.5 per tonne to stand at US$ 1582 per tonne. 3-months bid price and 3-months offer price decreased by US$ 32.5 per tonne to come in at US$ 1605.5 per tonne. Dec 21 bid price and Dec 21 offer price hovered at US$ 1705 per tonne, down by US$ 30 per tonne from US$ 1735 per tonne.
The LME aluminium opening stock decreased from 1541125 tonnes on June 10 to 1535250 tonnes on June 11. Live Warrants came in at 1334925 tonnes, while Cancelled Warrants stood at 200325 tonnes.
LME aluminium 3-months Asian Reference Price hovered at US$ 1609.42 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE declined sharply on Friday, June 12, from US$ 1977 per tonne to US$ 1949 per tonne.
The load-up of short positions and unwin/ding of long positions knocked the most-liquid SHFE contract into negative territory, and the contract closed 0.62 per cent lower at RMB 13,535 per tonne, near the five-day moving average. The contract gave back gains from overnight trading, when it hit a high not seen since February 11 at RMB 13,840 per tonne. It is expected to remain firm ahead of the delivery of the June contract, and a trading range of RMB 13,450-13,850 per tonne is expected for tonight.
The most-traded SHFE July contract relinquished gains from the previous day as longs covered their positions. It ended at RMB 13,565 per tonne last night and may trade between RMB 13,450 per tonne and RMB 13,900 per tonne today.
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