
The US dollar index extended its sharp decline on Thursday. LME base metals closed higher across the board on Thursday and aluminium gained 0.2%. However, SHFE base metals traded lower and aluminium declined 0.4%.
LME aluminium surged higher with the decline of greenback and closed yesterday’s trading at US$1778 per tonne. Three-month LME aluminium pulled back from an earlier high of US$1,807.5 per tonne to finish the trading day 0.17% higher at US$1,782 per tonne on Thursday. This reflected strong resistance from the US$1,800 per tonne level. LME aluminium is expected to trade between US$1,760-1,820 per tonne today.
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As on June 20, Thursday, LME aluminium cash (bid) price stood at US$ 1777 per tonne, LME official settlement price stands at US$ 1778 per tonne; 3-months bid price stands at US$ 1802 per tonne, 3-months offer price is US$ 1803 per tonne; Dec 20 bid price stands at US$ 1913 per tonne, and Dec 20 offer price stands at US$ 1918 per tonne.
The LME aluminium opening stock dropped to 1031625 tonnes. Live Warrants totalled at 669675 tonnes, and Cancelled Warrants were 361950 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1796 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) increased slightly to US$ 2021 per tonne today from US$ 2019 per tonne on Thursday.
The most-liquid SHFE August contract registered the third consecutive trading day of increase as it regained losses from the morning session after upbeat market sentiment buoyed prices. It returned above the five-day moving average, to an intraday high of RMB 13,910 per tonne, and closed at that level yesterday. As shorts added and longs cut their positions, the SHFE August contract slipped overnight, losing 0.36% to end at RMB 13,835 per tonne. Fundamentals caped its upside room overnight. It is expected to trade between RMB 13,700-14,000 per tonne today, with spot premiums of up to RMB 20 per tonne over the July contract.
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