
The US dollar extended its gains against a broad range of currencies on Wednesday, surpassing the 100 mark for the first time since 2017, as companies and investors worried by the coronavirus outbreak rushed to the world’s most liquid currency.
Three-month LME aluminium rebounded in European and North American trading hours, rising from a new 41-month low of US$ 1,613 per tonne to end at US$ 1,638.5 per tonne. It is likely to move between US$ 1,600 per tonne and US$ 1,650 per tonne today.
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As of Wednesday, March 18, LME official settlement price stood at US$ 1602.5 per tonne, after inching down for the third consecutive day. But Dec 21 bid price inched up to US$ 1820 per tonne from US$ 1748 per tonne on the previous day and Dec 21 offer price to US$ 1825 per tonne from US$ 1753 per tonne.
LME aluminium 3-months Asian Reference Price continued to hover at US$ 1665.91 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE slashed today, on March 19, from US$ 1801 per tonne to US$ 1693 per tonne.
The most-liquid SHFE May contract declined to the lowest level since October 2017 and closed down 3.49 per cent on the day at RMB 12,300 per tonne amid intensified risk aversion as COVD-19 cases surged overseas. While the virus impact on domestic production has waned, a delay in the recovery of end-user demand failed to offer support to aluminium prices. A falling market grew losses at aluminium smelters and may trigger potential production cuts.
The most-active SHFE 2005 contract is trading at RMB 12,100-12,600 per tonne. East China spot discounts are seen at RMB 60-40 per tonne against the SHFE 2004 contract.
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