
The US dollar index rose on Wednesday to a new high of 96.98 since March 13, while emerging-market currencies declined. LME base metals traded mixed on Wednesday. LME aluminium rose 0.05% while SHFE aluminium gained 0.48%.
The three-month LME aluminium rose to an intraday high of US$1,919.5 per tonne on Wednesday before it pared some gains to end marginally higher at US$1,903 per tonne. The market appeared to have been minimally affected by the Norsk Hydro’s announcement that it reached an agreement with Brazil’s federal prosecutor for a complete restart at Alunorte. LME aluminium is expected to trade at US$1,870-1,920 per tonne today.
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As on March 27, LME aluminium cash (bid) price stood at US$ 1898 per tonne, LME official settlement price stands at US$ 1898.50 per tonne; 3-months bid price stands at US$ 1914 per tonne, 3-months offer price is US$ 1914.50 per tonne; Dec 20 bid price stands at US$ 2043 per tonne, and Dec 19 offer price stands at US$ 2048 per tonne.
The LME aluminium opening stock dropped to 1142725 tonnes. Live Warrants totalled at 727675 tonnes, and Cancelled Warrants were 415050 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1899 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange remains unchanged from yesterday at US$ 2032 per tonne today.
As shorts took profits, the most active SHFE May contract rebounded from earlier lows of RMB 13,610 per tonne to close the trading day slightly higher at RMB 13,650 per tonne yesterday. The most traded SHFE May contract climbed to a high of RMB 13,730 per tonne overnight before long-covering weighed it to close at RMB 13,690 per tonne. With support at the 20-day moving average, the May contract is expected to trade at RMB 13,550-13,800 per tonne today with spot premiums of RMB 250-290 per tonne over the April contract. Market focus will remain on the value-added tax cuts in the near term.
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