
The US dollar index slid against a basket of other currencies as investors cut safe-haven holdings of the greenback, following a report that senior US officials were seeking to jumpstart trade talks with China. The rebound in the euro and pound also weighed on the US dollar.
As market fretted over the US relaxing sanctions on Rusal, LME aluminium slumped to a low of US$2,010 per tonne. The day’s trading was closed at US$1981.50 per tonne yesterday from US$ 2035 per tonne the day before. Prospects on potential China-US trade talks then buoyed it to rebound, but heavy pressure was seen from several moving averages above. It closed the night trading at US$2,057.5 per tonne and may trade at US$2,040-2,070 per tonne today.
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As on September 12, LME aluminium cash (bid) price stands at US$ 1981 per tonne, LME official settlement price stands at US$ 1981.50 per tonne; 3-months bid price stands at US$ 2022 per tonne, 3-months offer price is US$ 2023 per tonne; Dec 19 bid price stands at US$ 2058 per tonne, and Dec 19 offer price stands at US$ 2063 per tonne.
The LME aluminium opening stock dropped to 1052975 tonnes. Live Warrants totalled at 764200 tonnes, and Cancelled Warrants were 288775 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2050.33 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange registered a slight drop to stand at US$ 2116 per tonne today from US$ 2109 per tonne on September12.
The SHFE 1811 contract lost all the gains from the previous two days as bearish sentiment lingered, fuelled by market talk that China would reduce winter production curbs. The contract fell past the 10- and 20-day moving averages to close at RMB 14,555 per tonne yesterday. The contract then followed a similar movement overnight and settled at RMB 14,575 per tonne today. Strong support was seen at the RMB 14,500 per tonne level. The contract is expected to trade at RMB 14,500-14,650 per tonne today with spot offers at a discount of RMB 10 per tonne to a premium of RMB 30 per tonne.
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