
The US dollar fell against the Canadian dollar, which was buoyed by a resumed North American Free Trade Agreement (NAFTA) negotiation between the two counties on Tuesday. The US dollar inched down 0.08% to settle at 95.07.
LME aluminium recovered from Monday’s low run and settled at US$ 2035 per tonne on Tuesday September 12. It started gaining overnight with rising dollar but slumped to a low of US$2,042 per tonne amid falling base metals contracts during the European trading session. It closed at US$2,050 per tonne. Limited downward room is expected as costs of raw materials are high. Its trading range is set at US$2,040-2,065 per t today.
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As on September 11, LME aluminium cash (bid) price stands at US$ 2034 per tonne, LME official settlement price stands at US$ 2035 per tonne; 3-months bid price stands at US$ 2073 per tonne, 3-months offer price is US$ 2074 per tonne; Dec 19 bid price stands at US$ 2103 per tonne, and Dec 19 offer price stands at US$ 2108 per tonne.
The LME aluminium opening stock dropped to 1054525 tonnes. Live Warrants totalled at 764200 tonnes, and Cancelled Warrants were 290325 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2090.40 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange registered a slight drop to stand at US$ 2109 today from US$ 2131 per tonne on September11.
While the SHFE 1811 contract ended in the black and stood firmly above the five-day moving average, it closed lower than open prices yesterday, with limited upward momentum. Weak downstream consumption and uncertainty over winter production cuts weighed on aluminium prices even as potential Rusal output cuts provided some support. The SHFE 1811 contract met resistance at the 40- and five- day moving averages and settled at RMB 14,620 per tonne today morning. It may trade at RMB 14,580-14,720 per tonne today with spot offers at a discount of RMB 30 per tonne to a premium of RMB 10 per tonne.
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