The US dollar rebounded on Thursday, while stocks on Wall Street fell as growing Sino-US tensions and dismal economic data weighed on investor sentiment. The US dollar index, which measures the greenback’s strength against a basket of currencies, rose 0.26 per cent to 99.4425.
Three-month LME aluminium rose for a second straight day on Thursday, May 21, advancing to a one-month high of US$ 1,524.5 per tonne before ending up 0.4 per cent at US$ 1,521 per tonne. Optimism surrounding economic recovery that will boost demand, coupled with arbitrage trades, is expected to remain supportive of LME aluminium, which is expected to move at US$ 1,490-1,530 per tonne today.
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As of Thursday, May 21, LME aluminium cash (bid) price and LME official settlement price recorded a jump of US$ 33 per tonne to stand at US$ 1487 per tonne. 3-months bid price and 3-months offer price increased by US$ 28 per tonne to US$ 1514.50 per tonne. Dec 21 bid price and Dec 21 offer price stood at US$ 1634.50 per tonne after climbing from US$ 1610.50 per tonne.
The LME aluminium opening stock slipped 4025 tonnes to come in at 1462600 tonnes on May 21. Live Warrants totalled at 1240725 tonnes, and Cancelled Warrants 221875 tonnes.
LME aluminium 3-months Asian Reference Price hovered at US$ 1512.93 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE declined further from US$ 1852.89 per tonne on Thursday to US$ 1830 per tonne on Friday, May 22.
The most-liquid SHFE July contract snapped a six-day rising streak as it came off from an intraday high of RMB 13,020 per tonne, ending 0.74 per cent lower on the day at RMB 12,775 per tonne. The KDJ indicators expanded downwards.
The most active SHFE July contract bucked the downtrend across the nonferrous complex and rose to end at a session-high of RMB 12,880 per tonne overnight, up 0.27 per cent on the day. It is expected to move at RMB 12,700-13,100 per tonne today. In the physical market, inflows of imported aluminium ingots and sell-offs by some sellers depressed spot premiums.
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