
LME aluminium prices faced pressure overnight as Chalco called for a lift of China's tariff on primary aluminium's export, as seen by SMM. Base metals mostly inched up last night, but LME aluminium fell nearly 1% as inventories grew. The metal closed at US$ 2280 per tonne on May 17 from US$ 2319.50 per tonne on previous closing.

As on May 17, LME aluminium cash (bid) price stands at US$ 2279 per tonne, LME official settlement price stands at US$ 2280 per tonne; 3-months bid price stands at US$2260 per tonne, 3-months offer price is US$ 2260.50 per tonne; Dec 19 bid price stands at US$2205 per tonne, and Dec 19 offer price stands at US$ 2210 per tonne.
The LME aluminium opening stock stood at 1249450 tonnes. Live Warrants totalled at 996875 tonnes, and Cancelled Warrants were 252575 tonne.
LME aluminium 3-months ABR price is hovering low at US$2328.32 tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped from US$ 2316 per tonne on May 17 to US$ 2302 per tonne on May 18.
As longs actively entered the market, the SHFE 1807 contract hit a high of RMB14, 925 per tonne yesterday evening. The contract then fell and found support at the RMB 14,865 RMB. The contract is expected to trade at RMB 14,800-14,900 per tonne today with spot discounts at RMB 100-80 per tonne as smelters increased deliveries. SMM expects aluminium prices to continue their strong and rangebound pattern.
The US dollar hovered at five-month highs and closed 0.1% higher at 93.48 overnight. The US dollar is expected to hover at highs in the near term, while base metals are likely to consolidate at their current levels.
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