
The US dollar increased to 10-week-highs against the yen last Friday, as risk appetite improved amid a more upbeat outlook on some major economies and on expectations of a trade deal between China and the US. Base metals ended mostly higher last Friday and aluminium rose 0.29%. SHFE aluminium rose 0.59%.
LME aluminium rebounded to a high of $1,918.5/mt after a higher US dollar lowered it to US$1,898.50 per tonne. It is expected to trade at US$1,900-1,930 per tonne today.
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As on March 1, LME aluminium cash (bid) price stood at US$ 1890per tonne, LME official settlement price stands at US$ 1890.50 per tonne; 3-months bid price stands at US$ 1910 per tonne, 3-months offer price is US$ 1910.50 per tonne; Dec 20 bid price stands at US$ 2043 per tonne, and Dec 20 offer price stands at US$ 2048 per tonne.
The LME aluminium opening stock decreased to 1232950 tonnes. Live Warrants totalled at 661725 tonnes, and Cancelled Warrants were 571225 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1911 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2048 per tonne today from US$ 2039 per tonne on March 1.
The SHFE 1905 contract fell below the five-day moving average, to a week low at RMB 13,610 per tonne in early trades on Friday. A buildup of longs buoyed it in the afternoon, and ended it at RMB13,685 per tonne. The SHFE 1905 contract traded range-bound around the five-day moving average with a high of RMB 13,720 per tonne on Friday night. It ended at RMB 13,700 per tonne, with open interests down 1,138 lots to 328,540 lots. Recovery of downstream demand will determine aluminium prices in the short run. Today, prices are set at RMB 13,640-13,750 per tonne.
Despite expectations of consumption boom in March-May, expanding inventories and falling prices of alumina will limit upward momentum in the SHFE contract.
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