
The US dollar dipped and fell to a two-week low after Federal Reserve officials expressed caution over the global growth, prompting traders to reassess the pace of future US interest rate increases.
LME aluminium continued to trade weakly given negative fundamentals. The contract however closed Monday’s trading slightly higher than Friday at US$ 1918 per tonne. A weakened US dollar lifted the contract to a high of US$1,953 per tonne at night but it slid below the daily moving average gradually. It is expected to continue the decline with trading range at US$1,920-1,960 per tonne today.
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As on November 19, Monday, LME aluminium cash (bid) price stood at US$ 1917.50 per tonne, LME official settlement price stands at US$ 1918 per tonne; 3-months bid price stands at US$ 1940.50 per tonne, 3-months offer price is US$ 1941per tonne; Dec 19 bid price stands at US$ 2008 per tonne, and Dec 19 offer price stands at US$ 2013 per tonne.
The LME aluminium opening stock rose to 1070925 tonnes. Live Warrants totalled at 771075 tonnes, and Cancelled Warrants were 299850 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1946 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange drops slightly to US$ 1979 per tonne today from US$ 1980 per tonne on November 19.
After an open jump above the daily moving average, the SHFE 1901 contract climbed to a high of RMB 13,840 per tonne yesterday, along the five-day moving average, as longs added and shorts cut their bets. It then hovered within a tight range to finish the trading day and hit the highest since Wednesday November 14 at RMB 13,845 per tonne. The contract then came off from highs to around RMB 13,835 per tonne at night with limited upward momentum. As support remained at the five-day moving average below, the contract settled at RMB 13,790 per tonne after it dipped to a low of RMB 13,775 per tonne. It is likely to trade at RMB 13,700-13,800 per tonne today with resistance at the 10-day moving average. Spot discounts are set at RMB 60-20 per tonne.
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