
The US dollar dropped on Wednesday after the US Federal Reserve left interest rates unchanged. LME base metals closed mixed on Wednesday and aluminium inched up close to 0.1%. SHFE base metals performed and aluminium advanced 0.4%.
LME aluminium gained yesterday with dollar’s loss and closed the day’s trading at US$ 1746.50 per tonne. Three-month LME aluminium came off from a high of US$1,788 per tonne to close a tad higher at US$1,779 per tonne on Wednesday night. LME aluminium is expected to trade between US$1,750-1,820 per tonne today.
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As on June 19, Wednesday, LME aluminium cash (bid) price stood at US$ 1746 per tonne, LME official settlement price stands at US$ 1746.50 per tonne; 3-months bid price stands at US$ 1776 per tonne, 3-months offer price is US$ 1776.50 per tonne; Dec 20 bid price stands at US$ 1888 per tonne, and Dec 20 offer price stands at US$ 1893 per tonne.
The LME aluminium opening stock dropped to 1038700 tonnes. Live Warrants totalled at 677675 tonnes, and Cancelled Warrants were 361025 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1777 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) increased to US$ 2019 per tonne today from US$ 2009 per tonne on Wednesday.
The most-traded SHFE August contract failed to exceed RMB 13,890 per tonne yesterday as pressure above kept it around the daily moving average after overnight gains. It slid to an intraday low of RMB 13,825 per tonne, before ended 0.51% higher on the day at RMB 13,865 per tonne. The SHFE August contract then advanced 0.4% to end at RMB 13,910 per tonne overnight. Macro positive developments buoyed SHFE aluminium, but pressure remains at the RMB 14,000 per tonne level. The contract is likely to trade between RMB 13,800-14,100 per tonne today and spot premiums are seen up to RMB 20 per tonne over the July contract.
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