The US dollar rose on Thursday, July 16, while global stocks fell, as investors reacted to a mixed batch of economic data out of China and the US. The US dollar index, which measures the currency against a basket of rivals, gained 0.29 per cent to 96.250, after four consecutive days of losses.
Three-month LME aluminium fell for a third straight day on Thursday, shedding 0.6 per cent to US$1,668.5 per tonne. It is likely to move between US$ 1,650-1,690 per tonne today.
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As of Thursday, July 16, LME aluminium cash (bid) price and LME official settlement price sharply declined by US$ 24 per tonne from US$ 1651 per tonne on July 15 to US$ 1627 per tonne. 3-months bid price and 3-months offer price stood at US$ 1660.50 per tonne, down by US$ 25.5 per tonne from US$ 1686 per tonne on the previous day. Dec 21 bid price and Dec 21 offer price came in at US$ 1750 per tonne compared to US$ 1771.50 per tonne on July 15.
The LME aluminium opening stock increased from 1663800 tonnes to 1668525 tonnes. Live Warrants hovered at 1402350 tonnes, while Cancelled Warrants at 266175 tonnes.
LME aluminium 3-months Asian Reference Price stood at US$ 1662.02 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE decreased for the fourth consecutive day to stand at US$ 2011 per tonne on Friday, July 17.
The most-liquid SHFE August contract pulled back for the third consecutive day as departing longs sent it to a session low of RMB 13,960 per tonne, before it finished the day at RMB 13,975 per tonne, down 3.52 per cent on the day. That marked the biggest drop since April. Open interest shrank 7,090 lots to 399,562 lots. Low inventories of primary aluminium in China will underpin near-term aluminium prices.
The most-liquid SHFE August contract rose slightly from lows in more than a week in overnight trading, but remained in negative territory and closed down 0.35 per cent at RMB 14,145 per tonne. Low social inventories in China will continue to offer support, while eased spot tightness after the expiry of the SHFE July contract and profit-taking in the broad markets weigh. The SHFE August contract is expected to move between RMB 14,000-14,400 per tonne today.
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