
The US dollar traded robustly, supported by expectations of further interest rate hikes by the US Federal Reserve and the G-20 summit later this week when political leaders will focus on global trade tensions. The greenback index hovered above 97.
Base metals increased for the most part but aluminium edged down. The contract closed Monday’s trading at US$1920 per tonne, slightly lower than last Friday. After that LME aluminium settled at the highest overnight at US$1,949 per tonne as longs entered the market near closing. It is expected to test support at the 10-day moving average and trade at US$1,930-1,950 per tonne today. The general downturn continues to grapple all LME aluminium contracts.
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As on November 26, Monday, LME aluminium cash (bid) price stood at US$ 1918 per tonne, LME official settlement price stands at US$ 1919 per tonne; 3-months bid price stands at US$ 1929.50 per tonne, 3-months offer price is US$ 1930 per tonne; Dec 19 bid price stands at US$ 1995 per tonne, and Dec 19 offer price stands at US$ 2000 per tonne.
The LME aluminium opening stock dropped to 1064975 tonnes. Live Warrants totalled at 796900 tonnes, and Cancelled Warrants were 268075 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1945 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped slightly to US$ 1973 per tonne today from US$ 1980 per tonne on November 26.
On Monday, the SHFE 1901 contract extended the gains made in late trading on Friday night to the day’s highs of RMB 13,845 per tonne. It then came off the highs to close at RMB 13,805 per tonne. Slower depletion in social inventories of primary aluminium, coupled with lower prices of alumina declined the SHFE 1901 contract, once below the five- and 10- day moving averages. As greater capacity cuts across aluminium smelters for heating season provided some support, the contract rebounded above the 10-day moving average and settled at RMB 13,780 per tonne after night trading. The contract will also test support below at the 10-day moving average.
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