
The dollar rose against the safe-haven yen and Swiss Franc yesterday. The dollar index rallied some 0.15% and finished at 98.3. LME base metals closed mixed while SHFE metals ended mostly higher. LME aluminium fell 0.3%, and SHFE aluminium edged lower.
LME traded lower yesterday with the contracts closing lower. Three-month LME aluminium fell 0.3% overnight and ended at US$1,778.5 per tonne, after it came off from a high of US$1,790.5 per tonne to a low of US$1,774.5 per tonne. Trading range today is seen at US$1,700-1,800 per tonne.
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As on August 21, Wednesday, LME aluminium cash (bid) price stood at US$ 1750.50 per tonne, LME official settlement price stands at US$ 1751per tonne; 3-months bid price stands at US$ 1780 per tonne, 3-months offer price is US$ 1781 per tonne; Dec 20 bid price stands at US$ 1868 per tonne, and Dec 20 offer price stands at US$ 1873 per tonne.
The LME aluminium opening stock dropped to 947925 tonnes. Live Warrants totalled at 678300 tonnes, and Cancelled Warrants were 269625 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1788 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) has dropped to stand at US$ 2025 per tonne today from US$ 2040 per tonne on Tuesday.
The most traded SHFE 1910 contract clawed back some losses from overnight trade to finish its trading day 0.31% lower at RMB 14,335 per tonne. The October contract closed slightly lower at RMB 14,325 per tonne last night as shorts added their positions and dragged prices from a high of RMB 14,355 per tonne. Signs of recovery on the supply side may keep it trading between RMB 14,300-14,400 per tonne today.
Recent developments on the supply side will keep SHFE aluminium at highs in the short term, while upward momentum is expected as the low consumption season draws to an end.
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