
The US dollar steadied at one-week highs on Monday against a basket of other currencies amid positive news flow on the Sino-US trade front over the weekend. LME base metals closed mixed on Monday. Aluminium inched up 0.1%. The SHFE complex drifted lower overnight and aluminium shed 0.6%.
LME aluminium regained losses on the first day of the week. Three-month LME aluminium slipped to a session-low of US$1,733 per tonne on Monday, however, it recovered to close 0.11% higher at US$1,742 per tonne overnight. Three months LME aluminium price is at a considerably lower level than the cash price indicating backwardation. It is expected to hover in a range between US$1,730 and 1,745 per tonne today.
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As on November 25, Monday, LME aluminium cash (bid) price stood at US$ 1752 per tonne, LME official settlement price stands at US$ 1753 per tonne; 3-months bid price stands at US$ 1736 per tonne, 3-months offer price is US$ 1736.50 per tonne; Dec 20 bid price stands at US$ 1802 per tonne, and Dec 20 offer price stands at US$ 1807 per tonne.
The LME aluminium opening stock increased to 1230025 tonnes. Live Warrants totalled at 1051725 tonnes, and Cancelled Warrants were 178300 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1745 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE (Shanghai Future Exchange) increased to US$ 2005 per tonne today November 26, 2019.
Fall in social inventories of primary aluminium failed to sustain morale in longs, as the most-traded SHFE 2001 contract fell sharply below the 40-day moving average from an intraday high of RMB 13,875 per tonne, closing down 0.25% at RMB 13,805 per tonne yesterday. The SHFE 2001 contract slid further to a session-low of RMB 13,750 per tonne overnight, before it recouped some losses to finish down 0.58% at RMB 13,755 per tonne. Stable consumption limited downside in SHFE aluminium, which is expected to move between RMB 13,720-13,800 per tonne today. Spot premiums are seen at RMB 100-140 per tonne over the SHFE 1912 contract.
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