LME aluminium price surged to US$1613.5/t on extended loss of US dollar; SHFE price grew further by US$13/t

The US dollar extended losses on Wednesday, falling to a fresh three-month low against a basket of major currencies after the Federal Reserve made no policy changes, as expected.

Three-month LME aluminium recovered its declines from March as it climbed on a softened US dollar, hitting a session high of US$ 1,640 per tonne and ending higher on the day at US$ 1,627 per tonne. It is expected to trade between US$1,600 per tonne and US$ 1,650 per tonne today.

As of Wednesday, June 10, LME aluminium cash (bid) price and LME official settlement price jumped to US$ 1613.50 per tonne, an increase by US$ 48 per tonne. 3-months bid price and 3-months offer price also climbed from US$ 1592.50 per tonne to US$ 1638 per tonne. Dec 21 bid price and Dec 21 offer price came in at US$ 1735 per tonne, up by US$ 40 per tonne from US$ 1695 per tonne.

The LME aluminium opening stock remained flat at 1541125 tonnes on June 10. Also, Live Warrants showed restraint at 1335375 tonnes, while Cancelled Warrants slightly decreased from 205775 tonnes to 205750 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1604.77 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE continued to rise to stand at US$ 1977 per tonne, as of Thursday, June 11.

The most-liquid SHFE contract extended its gains on Wednesday, ending up 0.92 per cent at RMB 13,670 per tonne after scaling its highest since February 19 at RMB 13,730 per tonne in early morning trade. Funds are leaving the market as falling inventories dent sentiment among shorts while spot discounts prompt longs to take profits.

The most-active SHFE contract is to be traded at RMB 13,400-14,000 per tonne.