Slow year-end trading lowered the US dollar fell against the yen and euro on Monday as optimism over US-China trade dispute dented its safe-haven allure. However, the greenback stayed on track to log its strongest annual performance in three years. Base metals ended mixed on Monday, December 31. LME aluminium closed Monday’s trading at US$ 1869.50 per tonne, further down from Friday, December 28. The exchange remained closed on January 1 for New Year’s Day holiday.
LME aluminium is likely to maintain its weak trend and hover at US$1,840-1,875 per tonne today.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange started the week lower after the holidays at US$ 1942 per tonne on Wednesday 2 January.
Improved cash flow issues at domestic alumina plants will slow the decline in prices of alumina in the short run, and support prices of aluminium. However, a general oversupply of raw materials and slower production cuts of aluminium capacity will cap any increase in prices in the medium run. Today, the SHFE 1902 contract is likely to trade at RMB 13,435-13,565 per tonne, with spot discounts at RMB 60-20 per tonne.