
The US dollar edged lower against a basket of currencies last Friday on news of a preliminary China-US trade deal and an election victory for Britain’s Brexit-backing Conservative Party. LME base metals and the SHFE complex closed mostly lower. LME aluminium fell 0.4% and SHFE aluminium dropped 0.07%.
Three-month LME aluminium trimmed gains after climbing to a high of US$1,782 per tonne, ending down 0.4% on the day at US$1,764.5 per tonne, amid volatile macroeconomic development. The contract is likely to trade between US$1,740-1,800 per tonne.
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As on December 13, Friday, LME aluminium cash (bid) price stood at US$ 1762.50 per tonne, LME official settlement price stands at US$ 1763.50 per tonne; 3-months bid price stands at US$ 1774 per tonne, 3-months offer price is US$ 1774.50 per tonne; Dec 20 bid price stands at US$ 1833 per tonne, and Dec 20 offer price stands at US$ 1838 per tonne.
The LME aluminium opening stock increased again to 1375675 tonnes. Live Warrants totalled at 1263925 tonnes, and Cancelled Warrants were 111750 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1780 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE (Shanghai Future Exchange) dropped to US$ 1996 per tonne on Monday, December 16, 2019.
Improved macroeconomic sentiment drove longs to enter, lifting the most-traded SHFE 2002 contract above the daily moving average to an intraday high of RMB13,950 per tonne. It finished the session 0.29% higher on the day at RMB13,945 per tonne, nearly above all moving averages. The SHFE 2002 contract followed the movement of LME aluminium and closed lower at RMB 13,895 per tonne. The strength of downstream consumption will be closely monitored on the fundamental front. Today, the contract is seen trading between RMB 13,800-14,000 per tonne.
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