
A sharp decline in US existing home sales in September weakened the US dollar before the weekend. Both LME and SHFE base metals ended in mixed performance on Friday night. LME aluminium lost 0.25%.
As the US dollar strengthened, LME aluminium also traded weakly last Friday night as it registered the third consecutive trading day of decline to settle at US$2,006.50 per tonne with support from the US$2,000 per tonne level. We see it hovering at US$1,950-2,020 per tonne today.
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As on October 19, Friday, LME aluminium cash (bid) price stands at US$ 2022.50 per tonne, LME official settlement price stands at US$ 2022.50 per tonne; 3-months bid price stands at US$ 2023 per tonne, 3-months offer price is US$ 2024 per tonne; Dec 19 bid price stands at US$ 2070 per tonne, and Dec 19 offer price stands at US$ 2075 per tonne.
The LME aluminium opening stock dropped to 1066725 tonnes. Live Warrants totalled at 774500 tonnes, and Cancelled Warrants were 292225 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2014 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2039 per tonne today from US$ 2027 per tonne on October 19.
The SHFE 1812 contract rallied from a low of RMB 14,065 per tonne, but upward momentum slowed its growth near closing. It settled at RMB 14,145 per tonne. The contract then received support at RMB 14,000 per tonne after it fell below the daily moving average on Friday. It settled at RMB 14,100 per tonne. We see it testing support at the RMB 14,000 per tonne level today. Trading range is set at RMB 14,000-14,150 per tonne with spot discounts at RMB 70-40 per tonne.
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