
Most base metals and LME aluminium rebounded overnight on Tuesday and continued to trade higher as the US softened its approach to investment restrictions on China. LME aluminium surged over 2% recovering all the losses this week and rebounded to between the five- and 10-day moving averages. The contract closed higher at US$ 2204.5 per tonne yesterday, June 27. However, Shanghai Metals Market expects its weak trading pattern to continue trading at US$2,160-2,200 per tonne today.

As on June 27, LME aluminium cash (bid) price stands at US$ 2204 per tonne, LME official settlement price stands at US$ 2204.50 per tonne; 3-months bid price stands at US$ 2196 per tonne, 3-months offer price is US$ 2198 per tonne; Dec 19 bid price stands at US$ 2215 per tonne, and Dec 19 offer price stands at US$ 2220 per tonne.
The LME aluminium opening stock slightly dropped to 1117475 tonnes. Live Warrants totalled at 891850 tonnes, and Cancelled Warrants were 225625 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2172.02 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2127 per tonne on June 27 from US$ 2132 per tonne on June 26.
The SHFE 1808 contract hovered at RMB 14,160 per tonne yesterday after it surged to a high of RMB 14,235 per tonne near opening. The contract rose overnight and hit a high of RMB 14,305 per tonne. It is likely to trade at RMB 14,200-14,400 per tonne today with spot discounts at RMB 100-60 per tonne. While it’s likely to trade weakly in the short run, downward room will be limited with costs support from alumina and prebaked anode.
The US dollar index went up 0.64% to 95.3 overnight, on track for its second day of gains as trade-related worries eased. The upbeat economic data released on Wednesday also accounted for the gains in the greenback. Key factors to watch today include Eurozone economic sentiment in June, Germany consumer price index (CPI) in June and US PCE and GDP.
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