LME aluminium recovered losses on weak greenback; SHFE ended lower on weak investor interest

The US dollar dropped to a more than two-week low on Thursday against its rivals on optimism over the ongoing US-China trade talks. LME base metals closed higher on Thursday. LME aluminium gained 0.4% and SHFE base metals also drifted mostly higher overnight. Aluminium edged down 0.1%.

Three-month LME aluminium recovered from earlier losses to close Thursday trading 0.37% higher at US$1,750 per tonne, as the British pound strengthened against the greenback. Upside potential in LME aluminium, however, will be limited because of the rising LME aluminium inventories. The contract is expected to move between US$1,730-1,760 per tonne today.

As on October 10, Thursday, LME aluminium cash (bid) price stood at US$ 1737.50per tonne, LME official settlement price stands at US$ 1738 per tonne; 3-months bid price stands at US$ 1741 per tonne, 3-months offer price is US$ 1743 per tonne; Dec 20 bid price stands at US$ 1823 per tonne, and Dec 20 offer price stands at US$ 1828 per tonne.

The LME aluminium opening stock increased to 968450 tonnes. Live Warrants totalled at 788875 tonnes, and Cancelled Warrants were 179575 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1740 per tonne.

SHFE Aluminium Price Trend

The most traded SHFE 1912 contract overnight gave back gains from a strong start bolstered by an over 1,000-lot increase in long positions. It ended 0.1% weaker at RMB 13,865 per tonne. SHFE aluminium resisted the uptrend across the nonferrous complex overnight, suggesting that investors had limited interest in the metal. SHFE aluminium is likely to trade between RMB 13,830-13,950 per tonne today.