
The US dollar increased to a two-week high against a basket of currencies as unexpectedly strong data on US services industries and new home sales allayed some worries about the US economy. Base metals ended mix last night. LME aluminium edged down and SHFE aluminium inched up.
LME aluminium closed the day’s trading at US$ 1868.50 per tonne. LME aluminium rebounded after it fell below all moving averages. A higher US dollar kept it below the 40-day moving average and ended it lower on the day at US$1,871 per tonne. SMM expects it to trade at US$1,840-1,900 per tonne today.
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As on March 5, LME aluminium cash (bid) price stood at US$ 1868 per tonne, LME official settlement price stands at US$ 1868.50 per tonne; 3-months bid price stands at US$ 1889 per tonne, 3-months offer price is US$ 1890 per tonne; Dec 20 bid price stands at US$ 2020 per tonne, and Dec 20 offer price stands at US$ 2025 per tonne.
The LME aluminium opening stock increased to 1233150 tonnes. Live Warrants totalled at 656675tonnes, and Cancelled Warrants were 576475 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1884.50per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2023 per tonne today from US$ 2021 per tonne on March 5.
The SHFE 1905 contract closed higher at RMB13,590 per tonne. The backwardation of SHFE aluminium contracts remained, but narrowed overnight. SMM expects the contract to trade at RMB13,500-13,680 per tonne with spot discounts at RMB80-40 per tonne.
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