
The US dollar rallied from a two-week low and settled at 96.79 as a sell-off in global stock markets spurred safe-haven bids and investors grew concerned about slowing global growth. Base metals, except for LME aluminium, fell across the board with LME zinc leading the losses and closing 2.48% lower.
LME aluminium continued to trade weakly in absence of strong fundamentals but recovering slowly showing an uptrend. The contract however closed Tuesday’s trading slightly higher than Monday at US$ 1927 per tonne. It is expected to trade weak a trading range of US$1,920-1,960 per tonne today.
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As on November 20, Tuesday, LME aluminium cash (bid) price stood at US$ 1926 per tonne, LME official settlement price stands at US$ 1927 per tonne; 3-months bid price stands at US$ 1940 per tonne, 3-months offer price is US$ 1940.50 per tonne; Dec 19 bid price stands at US$ 2005 per tonne, and Dec 19 offer price stands at US$ 2010 per tonne.
The LME aluminium opening stock rose to 1073050 tonnes. Live Warrants totalled at 785875 tonnes, and Cancelled Warrants were 287175 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1935 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange drops slightly to US$ 1975 per tonne today from US$ 1979 per tonne on November 19.
As shorts aggressively added their bets, the SHFE 1901 contract tumbled through the lower Bollinger band to close at RMB 13,710 per tonne yesterday. This forced the contract to give up all the gains made in the previous day with its KDJ lines diverging and expanding downwards. Open interest for the contract grew 9,800 lots to 273,336 lots. It is likely to trade at RMB 13,700-13,800 per tonne today with resistance at the 10-day moving average. Spot discounts are set at RMB 60-20 per tonne.
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