
The US dollar edged down as US-China trade tension continued. The partial US government shutdown and a three-year low in US pending home sales also weighed on the greenback.
Base metals fell for the most part but LME aluminium jumped 2.46%. LME aluminium closed Tuesday’s trading at US$1867.50 per tonne and fell below support at the five-, 20-, and 10-day moving averages during the Asian trading session as US-CHINA trade talk optimism waned. It rebounded to a month-high of US$1,896.5 per tonne during the European trading session and closed at US$1,893 per tonne. The contract is expected to trade at US$1,860-1,895 per tonne.
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As on January 22, LME aluminium cash (bid) price stood at US$ 1867 per tonne, LME official settlement price stands at US$ 1867.50 per tonne; 3-months bid price stands at US$ 1867.50 per tonne, 3-months offer price is US$ 1868 per tonne; Dec 19 bid price stands at US$ 1990 per tonne, and Dec 19 offer price stands at US$ 1995 per tonne.
The LME aluminium opening stock stood at 1301625 tonnes. Live Warrants totalled at 997200 tonnes, and Cancelled Warrants were 304425 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1850 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 1981 per tonne from US$ 1972 per tonne on January 22.
Despite slight gains in earlier trades, the SHFE 1903 contract weakened during the day and ended at RMB 13,395 per tonne, down 1% on the trading day. This forced it to give up gains in the previous two trading days. The rebound buoyed the SHFE 1902 contract to open at a high of RMB 13,455 per tonne during night trading. As longs took profits and left, the contract dipped to the 10-day moving average and settled at RMB 13,475 per tonne. It is expected to trade at RMB 13,420-13,520 per tonne today with spot discounts at RMB 70-30 per tonne.
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