
The US dollar index edged down 0.31% to close at 95.1 as the pound jumped after it was reported that Germany was prepared to make a major compromise on Brexit. Base metals closed mixed.
LME aluminium contract gained after three consecutive falls and closed the day’s trading at US$ 2045 per tonne yesterday. With support from high costs of alumina, LME aluminium jumped to a high of US$2,087 per tonne and closed at US$2,060 per tonne overnight. It is likely to consolidate at US$2,050-2,080 per tonne with limited downward room.
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As on September 5, LME aluminium cash (bid) price stands at US$ 2045.50per tonne, LME official settlement price stands at US$ 2045 per tonne; 3-months bid price stands at US$ 2076 per tonne, 3-months offer price is US$ 2077 per tonne; Dec 19 bid price stands at US$ 2112 per tonne, and Dec 19 offer price stands at US$ 2117 per tonne.
The LME aluminium opening stock dropped to 1064450 tonnes. Live Warrants totalled at 767075 tonnes, and Cancelled Warrants were 297375 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2064 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange stood at US$ 2134 today from US$ 2132 per tonne on yesterday September 5.
The most active SHFE aluminium contract ended in negative territory for six consecutive days and settled at RMB 14,670 per tonne on Wednesday. The contract fell to an intraday low of RMB 14,660 per tonne after it hovered around RMB 14,710 per tonne. The 1811 contract became the most traded SHFE aluminium contract. The contract came down from a high of RMB 14,740 per tonne to settle at RMB 14,710 per tonne overnight. On Wednesday, Alunorte signed two agreements to resume normal operations at the alumina refinery in Pará, Brazil. The 1811 contract is set to trade at RMB 14,650-14,750 per tonne today with spot discounts up to RMB 40 per tonne.
Investors remained cautious ahead of the deadline for US tariffs on $200 billion of Chinese goods. Technically, the contract fell past the five- and 10-day moving averages and is likely to test the 20-day moving average. Support is likely to be sustained at RMB 14,600 per tonne.
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