
The dollar index logged a new high in over one year, settling at 96.45 on Friday night, while the Turkish lira fell over 20% against the greenback, reaching a record low of 6.87, after US President Donald Trump announced he was doubling metals tariffs on Turkey.
LME aluminium showed downward trend during the day’s trading on Friday August 10 closing at US$ 2039 per tonne. After hitting a high of US$2,117 per tonne overnight, LME aluminium came off and closed at US$2,078.5 per tonne with strong resistance at the 40-day moving average. It is likely to continue to struggle among several moving averages and trade at US$2,060-2,100 per tonne today.
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As on August 10, LME aluminium cash (bid) price stands at US$ 2038.50 per tonne, LME official settlement price stands at US$ 2039 per tonne; 3-months bid price stands at US$ 2060 per tonne, 3-months offer price is US$ 2061 per tonne; Dec 19 bid price stands at US$ 2103 per tonne, and Dec 19 offer price stands at US$ 2108 per tonne.
The LME aluminium opening stock dropped to 1149825 tonnes. Live Warrants totalled at 831675 tonnes, and Cancelled Warrants were 318150 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2071 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange dropped to US$ 2108 per tonne on August 10, from US$ 2117 per tonne on August 9.
The SHFE 1810 aluminium contract fell on Friday afternoon after a jump in the US dollar index. Support was seen at the RMB 14,600 per tonne level and the contract closed at RMB 14,620 per tonne. Trading level mostly stayed above the five- and 10-day moving averages. The contract opened at the five-day moving average today morning and rose to RMB 14,775 per tonne. It then fell and closed at RMB 14,685 per tonne as some longs covered their positions. SHFE aluminium prices would strengthen in the medium term with resistance at RMB 14,850 per tonne. We expect the SHFE 1810 contract to trade range bound at RMB 14,600-14,800 per tonne today with spot discounts narrower at RMB 40-0 per tonne as the delivery date approaches.
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