
The LME aluminium contract closed at US$2271 per tonne on June1 from US$2265.5 per tonne on previous closing, mostly driven by a strong dollar. LME aluminium regained some losses last Friday night with support from several moving averages. Shanghai Metals Market expects it to try to stand firmly above the US$2,300 per tonne level today with a trading range of US$2,280-2,315 per tonne.

As on June 1, LME aluminium cash (bid) price stands at US$ 2270 per tonne, LME official settlement price stands at US$ 2271 per tonne; 3-months bid price stands at US$ 2270 per tonne, 3-months offer price is US$ 2271 per tonne; Dec 19 bid price stands at US$ 2245 per tonne, and Dec 19 offer price stands at US$ 2250 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 increased to 1206375 tonnes. Live Warrants totalled at 934600 tonnes, and Cancelled Warrants were 271775 tonne.
LME aluminium 3-months ABR price is hovering at US$ 2301per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2267 per tonne on June 4 from US$ 2260 per tonne on June1.
The SHFE 1807 contract dipped to a low of RMB 14,580 per tonne with pressure from shorts on Friday. As the price of alumina is likely to fall in the near term, the contract is set to see its trading range move downwards. As its LME counterpart stabilised, the SHFE 1807 contract rebounded to the RMB 14,640 per tonne level after it fell to a low of RMB14,585 per tonne last Friday night. SMM expects it to trade at RMB 14,580-14,750 per tonne today with spot discounts at RMB 60-20 per tonne.
The US dollar index closed at 94.179 last Friday, slightly down over the week. The index registered a six-month high of around 95.02 in the middle of last week and then lost the gains.
Key factors to watch today include the Eurozone Sentix investor confidence index in June, US durable goods order and factory orders in April.
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