
The dollar stopped a five-day losing streak and the euro fell on Thursday. The greenback received a boost from political uncertainty, a new round of trade tariffs and the Federal Reserve's decision to raise interest rates. The dollar index gained 0.57% to close at 95.617.
LME aluminium rebounded to an intraday high of US$2,074.5 per tonne and ended Thursday at US$2,070 per tonne. LME official settlement price stood at US$ 2021.5 per tonne, lower from the last closing. Shanghai Metals Market expects it to remain rangebound today with a trading range of US$2,065-2,080 per tonne.
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As on August 23, LME aluminium cash (bid) price stands at US$ 2021 per tonne, LME official settlement price stands at US$ 2021.50 per tonne; 3-months bid price stands at US$ 2043 per tonne, 3-months offer price is US$ 2044 per tonne; Dec 19 bid price stands at US$ 2080 per tonne, and Dec 19 offer price stands at US$ 2085 per tonne.
The LME aluminium opening stock dropped to 1099975 tonnes. Live Warrants totalled at 829875 tonnes, and Cancelled Warrants were 270100 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2055 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased slightly to US$ 2121 per tonne on August 24, from US$ 2119 per tonne on August 23.
While longs pulled the SHFE 1810 contract up to a high of RMB 14,715 tonne in the morning, concerns of escalated US-China trade tension depressed it to close at an intraday low of RMB 14,630 per tonne yesterday. The contract rose to a high of RMB 14,775 per tonne and closed at RMB 14,750 per tonne overnight. We expect it to trade at RMB 14,650-14,800 per tonne today with spot discounts at RMB 70-30 per tonne. The contract is likely to test support again at the 10-day moving average in the short run.
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