
The US dollar was under pressure on Wednesday, August 5, from a towering euro and crumbling US yields, as the latest coronavirus relief package got bogged down in Congress and investors braced for a bumpy ride to economic repair.
Three-month LME aluminium shed 0.42 per cent to end at US$ 1,760.5 per tonne on Wednesday in choppy trading. Open interest added 10,443 lots to 797,000 lots as shorts added positions.
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Both LME aluminium cash (bid) price and LME official settlement price, as of Wednesday, August 5, jumped from US$ 1709.50 per tonne to US$ 1739 per tonne, marking the highest in last six months. 3-months bid price and 3-months offer price stood at US$ 1778.50 per tonne, registering a hike of US$ 30 per tonne from US$ 1748.50 per tonne on August 4. Dec 21 bid price and Dec 21 offer price rebounded to US$ 1854 per tonne.
The LME aluminium opening stock declined from 1642050 tonnes to 1637675 tonnes. Live Warrants hovered at 1376550 tonnes, while Cancelled Warrants at 261125 tonnes.
LME aluminium 3-months Asian Reference Price stood at US$ 1771.94 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE decreased to stand at US$ 2106 per tonne on Thursday, August 6, 2020.
The most-traded SHFE 2009 aluminium contract slipped to a session low of RMB 14,605 per tonne, before reversing some losses to finish the day 0.44 per cent weaker at RMB 14,660 per tonne. Longs continued to add positions.
The most-liquid SHFE 2009 aluminium contract trended lower in overnight trading, closing 1.29 per cent weaker at RMB 14,530 per tonne. It is likely to trade between RMB 14,500-14,850 per tonne today, while spot premiums are seen at RMB 50-70 per tonne.
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