
The US dollar index recovered to 97 on Wednesday as support from the stronger euro and yen faded. Both LME and SHFE base metals ended in mixed territory overnight. LME aluminium inched up 0.15% while SHFE aluminium fell 0.33%.
LME aluminium dropped from the quick high of US$ 1985 per tonne to US$1966.50 per tonne yesterday. However, LME aluminium outperformed its SHFE counterpart overnight and traded marginally higher at US$1,973 per tonne. It is expected to trade at US$1,950-1,980 per tonne today.
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As on December 5, Wednesday, LME aluminium cash (bid) price stood at US$ 1966 per tonne, LME official settlement price stands at US$ 1966.50 per tonne; 3-months bid price stands at US$ 1970 per tonne, 3-months offer price is US$ 1970.50 per tonne; Dec 19 bid price stands at US$ 2025 per tonne, and Dec 19 offer price stands at US$ 2030 per tonne.
The LME aluminium opening stock dropped to 1045250 tonnes. Live Warrants totalled at 794200 tonnes, and Cancelled Warrants were 251050 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1968 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 1971per tonne today from US$ 1990 per tonne on December 5.
As the market refocused on fundamentals, weak supply and demand caused the SHFE 1901 contract to trade below the daily moving average yesterday, with an intraday low at RMB13,705 per tonne near closing. The contract settled at RMB13,715 per tonne with open interests up 3,530 lots to 197,000 lots. After a negative open, the SHFE 1901 contract fluctuated to close lower at RMB13,710 per tonne overnight, posting a two-day losing streak. As fundamentals remained weak, the contract remained subdued and is expected to trade at RMB 13,650-13,750 per tonne today with spot discounts at RMB 70-30 per tonne.
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