
The US dollar recovered on Monday from overnight losses after the US and China sought to ease trade war tensions. President Donald Trump said negotiations with Chinese officials would restart soon. Vice Premier Liu He, who has been leading the talks with Washington, said China was willing to resolve the trade dispute through “calm” negotiations.
The dollar index edged up and finished at 98.38. SHFE metals ended higher for the most part while the London Metal Exchange remained closed on August 26 for Summer Bank Holiday. SHFE aluminium ended flat yesterday night.
{alcircleadd}Three-month LME aluminium rebounded swiftly after the announcement of higher Chinese tariffs on American goods depressed base metal prices on Friday. It edged higher on the day and closed at RMB 1,767 per tonne on Friday night. The trading range is expected at US$1,700-1,780 per tonne today.

SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) has dropped to stand at US$ 1986 per tonne today from US$ 1991 per tonne on Monday.
The most traded SHFE 1910 contract dropped to a low of RMB 14,210 per tonne shortly opening bell, as investors trimmed their positions on profit-taking and trade escalation. It finished the trading day 0.49% lower at RMB 14,215 per tonne. The October contract then pared gains after it advanced to a high of RMB 14,265 per tonne settling flat on the day at RMB 14,215 per tonne. Smaller arrivals lowered social inventories of primary aluminium by some 20,000 tonne over the weekend, and this boosted confidence in longs. Expectations of the upcoming high season demand may keep the contract between RMB 14,190-14,250 per tonne today.
SMM data showed that social inventories of primary aluminium ingots shrank 20,000 tonne over the weekend, as the low season drew to an end. This pointed to robust fundamentals, which will likely bolster prices.
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