
After it touched a seven-week high, the US dollar dipped on Tuesday when US bond yields declined. The dollar also fell as the British pound rose against it. LME base metals ended mixed overnight. LME aluminium fell to a week-low during yesterday’s trading closing at US$ 2031.50 per tonne. Then the contract recovered some losses overnight. The aluminium cash contract registered a three-day losing streak on Tuesday on the dollar's strength and on news of restarting of alumina operations at Alunorte. It is expected to trade at US$2,040-2,080 per tonne today.

As on October 9, LME aluminium cash (bid) price stands at US$ 2031 per tonne, LME official settlement price stands at US$ 2031.50 per tonne; 3-months bid price stands at US$ 2040 per tonne, 3-months offer price is US$ 2040.50 per tonne; Dec 19 bid price stands at US$ 2083 per tonne, and Dec 19 offer price stands at US$ 2088 per tonne.
The LME aluminium opening stock dropped further to 955,950 tonnes. Live Warrants totalled at 609,625 tonnes, and Cancelled Warrants were 346,325 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2060 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2082 per tonne today from US$ 2095 per tonne on October 9.
The SHFE 1811 contract hovered in a narrow range during the day and settled at RMB14,560 per tonne on October 9. Favourable factors including China’s higher tax rebate and the central bank’s reserve requirement ratio cut supported the contract. While the contract opened in negative territory overnight, it climbed into positive territory and notched a three-day winning streak. The contract is likely to trade at RMB 14,500-14,650 per tonne today with spot discounts at RMB 50-20 per tonne.
The market should monitor developments at Hydro’s alumina refinery Alunorte.
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