
The US dollar index fell from a six-month high to around 94 overnight due to the lower-than-expected employment data and GDP from the US, intensified worries over US-Sino trade conflicts and a rebound in the euro. LME base metals rose for the most part. The contract recovered from the 40-day moving average and closed at US$2265.5 per tonne from US$2260 per tonne on previous closing. LME aluminium traded range-bound last night. It touched a high of US$2,284 per tonne after it was dragged down by its SHFE counterpart. It is likely to retain its range bound pattern today.

As on May 30, LME aluminium cash (bid) price stands at US$ 2264.50 per tonne, LME official settlement price stands at US$ 2265.50 per tonne; 3-months bid price stands at US$ 2271.50 per tonne, 3-months offer price is US$ 2272.50 per tonne; Dec 19 bid price stands at US$ 2250 per tonne, and Dec 19 offer price stands at US$ 2255 per tonne.
Currently, 3 months LME aluminium and LME cash price settle in the same range with the easing out of supply concerns.
The LME aluminium opening stock slightly dropped to 1210300 tonnes. Live Warrants totalled at 935275 tonnes, and Cancelled Warrants were 275025 tonne.
LME aluminium 3-months ABR price is hovering at US$ 2262.32 tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2278 per tonne on May 31 from US$ 2271 per tonne on May 30.
The SHFE 1807 contract initially hit a high of RMB14,780 per tonne as shorts closed out their position. The contract then fell as the nonferrous complex weakened and touched a low of RMB 14,650 per tonne yesterday evening. The SHFE 1807 contract is expected to receive support from a declining inventory that stands at 2.03 million tonnes. Shanghai Metals Market sees it trading at RMB14,650-14,900 per tonne with spot discounts at RMB 80-40 per tonne. SHFE aluminium is expected to continue its rangebound pattern in the short term with a lack of developments for direction.
China’s official manufacturing purchasing managers’ index (PMI), the US core PCE price index, data of crude oil inventory and eurozone CPI in May are the factors to be watched out for today.
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