LME aluminium price slips again; SHFE aluminium gains 0.3% overnight

The US dollar index rose on Wednesday as the Federal Reserve’s latest policy meeting appeared more hawkish than the market had expected. LME base metals traded higher across the board on Wednesday and aluminium increased1%. SHFE base metals, except for tin, performed similarly overnight. SHFE aluminium gained 0.3%.

LME aluminium closed the day’s trading at US$ 1829.50 per tonne. The three-month LME aluminium contract advanced some 1% to end Wednesday at US$1,876 per tonne. SMM expects the contract to trade at US$1,850-1,880 per tonne today.

As on February 20, LME aluminium cash (bid) price stood at US$ 1829 per tonne, LME official settlement price stands at US$ 1829.50per tonne; 3-months bid price stands at US$ 1855 per tonne, 3-months offer price is US$ 1856 per tonne; Dec 19 bid price stands at US$ 1997 per tonne, and Dec 19 offer price stands at US$ 2002 per tonne.  

The LME aluminium opening stock decreased to 1250000 tonnes. Live Warrants totalled at 677950 tonnes, and Cancelled Warrants were 572050 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1869.56 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2013 per tonne today from US$ 2000 per tonne on February 20.  

The SHFE 1904 contract regained the majority of losses from the end of the Chinese New Year holiday as it stood firm above the 10-day moving average and climbed to the Bollinger upper band yesterday. It dipped to an intraday low of RMB13,460 per tonne in the afternoon. The contract settled at RMB13,520 per tonne, with open interests down 3,922 lots to 211,000 lots.

The SHFE 1904 contract closed at RMB13,530 per tonne overnight. SMM expects the contract to trade at RMB13,450-13,550 per tonne today, with spot discounts at RMB80-40 per tonne.