
The dollar fell to low in two weeks on Thursday against a basket of currencies as traders pared greenback holdings on lower US Treasury yields and further losses on Wall Street. A weaker-than-forecast rise in US consumer prices in September also reduced bets for a faster pace of interest rate.
LME aluminium continued downward trend and closed at US$ 2024 per tonne on Thursday October 11. The contract fluctuated to a six-day losing streak and notched a new low in three weeks on Thursday. Its weekly KDJ lines expanded downwards but support remained at US$2,000 per tonne. The contract is likely to trade at US$2,010-2,050 per tonne today.
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As on October 11, LME aluminium cash (bid) price stands at US$ 2023.50 per tonne, LME official settlement price stands at US$ 2024 per tonne; 3-months bid price stands at US$ 2028 per tonne, 3-months offer price is US$ 2028.50 per tonne; Dec 19 bid price stands at US$ 2078 per tonne, and Dec 19 offer price stands at US$ 2083 per tonne.
The LME aluminium opening stock dropped further to 941,500 tonnes. Live Warrants totalled at 609,625 tonnes, and Cancelled Warrants were 331,875 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2021 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2055 per tonne today from US$ 2047 per tonne on October 11.
Weaker cost support, greater supplies of ingots, and slow downstream demand depressed the SHFE 1811 contract close to RMB 14,000 per tonne level. A weaker US stock market and falling base metals contracts also weighed on market sentiment. The contract settled at RMB14,185 per tonne. It is likely to test resistance at the five-day moving average. SHFE 1812 contract moved to the most traded contract and closed higher than its opening price overnight. Then it traded rangebound in negative territory and ended at RMB14,260 per tonne. It is expected to trade at RMB14,150-14,300 per tonne today with spot discounts at RMB 60-20 per tonne.
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