Three-month LME aluminium closed 0.61% lower at $1697/t, SHFE aluminium grew to $2063/t
The US dollar index touched a new 22-month low on Friday, July 24, while the safe-haven yen rose to its highest in more than four-months, as investors reacted to simmering US-China tensions, a continued rise in coronavirus cases as well as hopes for another US stimulus package.
Three-month LME aluminium fluctuated to close 0.61 per cent lower at US$ 1,697 per tonne on Friday, posting a weekly gain of 2.04 per cent. It is likely to continue to move at US$ 1,680-1,720 per tonne today.
On Friday, July 24, both LME aluminium cash (bid) price and LME official settlement price edged lower at US$ 1654.50 per tonne from US$ 1661 per tonne. 3-months bid price and 3-months offer price stood at US$ 1692 per tonne, down by US$ 4.5 per tonne from US$ 1697.50 per tonne on July 23. Dec 21 bid price and Dec 21 offer price came in at US$ 1776.50 per tonne compared to US$ 1784.50 per tonne on the previous day.
The LME aluminium opening stock increased from 1640425 tonnes to 1649275 tonnes. Live Warrants hovered at 1376075 tonnes, while Cancelled Warrants at 273200 tonnes.
LME aluminium 3-months Asian Reference Price stood at US$ 1692.43 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE increased to stand at US$ 2063 per tonne on Monday, July 27, 2020.
The most-liquid SHFE contract bounced back after declined to an intraday low of RMB 14,305 per tonne, as shorts positions took profits and left, before the contract ended at RMB 14,405 per tonne, up 0.28 per cent on the day. Open interest shrank 5,886 lots to 103,697 lots. Social inventories have not shown significantly buildup, suggesting healthy downstream demand. The spot market will remain supportive of aluminium prices in the near term.
The most-active SHFE August contract ended a tad weaker at RMB 14,415 per tonne on Friday night in choppy trading. Low inventories, robust demand and firm spot premiums will remain supportive of SHFE aluminium prices. The SHFE August contract is expected to trade at RMB 14,300-14,700 per tonne today.
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