
A very strong U.S. dollar index that hit a new high for the year overnight is a negative for the base metals markets. Dollar index continues its highs and currently stands at 99.1 putting pressure on LME aluminium.
Despite the inventory of LME warehouses falling to a multi-year lows and Shanghai Futures Exchange stocks are at two-year lows, none of that has been able to lift aluminium prices. Total LME stocks last week slipped below 900,000 tonnes for the first time since 2008 but the market saw no improvement in prices.
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LME three-month metal has touched $1,713.50 per tonne today morning, which is the lowest since January 2017. According to analysts, falling production stocks are just brief trends and the key focus is now on the global drop in aluminium demand.
As on October 1, Tuesday, LME aluminium cash (bid) price stood at US$ 1705 per tonne, LME official settlement price stands at US$ 1705.50 per tonne; 3-months bid price stands at US$ 1718.50 per tonne, 3-months offer price is US$ 1719.50 per tonne; Dec 20 bid price stands at US$ 1800 per tonne, and Dec 20 offer price stands at US$ 1805 per tonne.
The LME aluminium opening stock increased to 936025 tonnes. Live Warrants totalled at 749700 tonnes, and Cancelled Warrants were 186325 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1715 per tonne.
SHFE Aluminium Price Trend
China market and the Shanghai Futures Exchange (SHFE) will remain closed from Tuesday October 1 to Monday October 7 for the National Day holiday.
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