
The dollar rebounded from a nearly one-month low hit in the previous session, as US and Chinese officials said the two countries would continue to negotiate on trade. US President Donald Trump insisted on Tuesday that trade talks with China had not collapsed and called the widening US-China tariff war "a little squabble".
LME base metals rallied across the board. LME aluminium rose 1.57%, SHFE aluminium gained 0.95%. LME aluminium traded robustly overnight with a high of US$1846.5 per tonne, ending 1.57% higher at US$1,839 per tonne after a positive indication on US china trade negotiations. LME aluminium is trading at US$1,810-1,840 per tonne today.
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As on May 14, LME aluminium cash (bid) price stood at US$ 1791.50 per tonne, LME official settlement price stands at US$ 1792 per tonne; 3-months bid price stands at US$ 1822 per tonne, 3-months offer price is US$ 1823 per tonne; Dec 20 bid price stands at US$ 1933 per tonne, and Dec 20 offer price stands at US$ 1938 per tonne.
The LME aluminium opening stock dropped to 1255450 tonnes. Live Warrants totalled at 843850 tonnes, and Cancelled Warrants were 411600 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1811per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange has increased substantially to US$ 2085.5 per tonne today from US$ 2071 per tonne on Tuesday May 14.
Longs exited after the most-active SHFE June contract jumped to a high of RMB 14,260 per tonne in early trades. This drove it to a low of RMB 14,165 per tonne, before it ended 0.25% lower on the day at RMB 14,190 per tonne. Rising longs also bolstered the most-traded SHFE June contract to the highest since mid-October of 2018, at RMB 14,310 per tonne. Lower alumina supply and peak-season demand are likely to keep the contract at RMB 14,300-14,400 per tonne. Spot offers are likely to stand flat or traded with a premium of RMB 20 per tonne today. The dominant contract may shift to the July contract today.
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