LME aluminium price increased to $1577.5/t; Most-liquid SHFE contract came off from session highs

The US dollar continued to edge lower on Tuesday, June 23, hitting the lowest level in more than a week, as the US President Donald Trump boosted investors’ optimism after he tweeted that the trade deal with China was “still intact”. This followed an increase in the greenback when the markets were unsettled by surprise comments from White House trade adviser Peter Navarro who said the hard-won deal was “over”.

Three-month LME aluminium consolidated weakly around the five and 10- day moving averages on Tuesday, falling to an intraday low of US$1,590.5 per tonne near closing and paring some losses to end 0.59% lower on the day. 

As of Tuesday, June 23, LME aluminium cash (bid) price and LME official settlement price increased from US$ 1573 per tonne to US$ 1577.50 per tonne. 3-months bid price and 3-months offer price rebounded at US$ 1598 per tonne, while Dec 21 bid price and Dec 21 offer price came in at US$ 1700.50 per tonne compared to US$ 1696 per tonne on Monday, June 22.

The LME aluminium opening stock totalled 1617550 tonnes. Live Warrants stood at 1426850 tonnes, while Cancelled Warrants 190700 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1592.54 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE again declined to stand at US$ 1950 per tonne on Wednesday, June 24, following a jump from US$ 1943 per tonne to US$ 1953 per tonne on Tuesday, June 23.

The most-liquid SHFE contract came off from session highs, but remained in positive territory. It finished the day 0.4% higher at RMB 13,655 per tonne.

The most-traded SHFE August contract pulled back from a high of RMB 13,755 per tonne overnight, closing lower on the day at RMB 13,620 per tonne, as risk aversion sentiment pre-holiday prompted investors to cover positions. The contract is seen trading at RMB 13540-13660 per tonne today.