
The US dollar index receded slightly to end at 98.3. LME base metals closed mostly lower while SHFE metals grew for the most part yesterday.
LME aluminium traded lower over the day. Three-month LME aluminium came off from highs as shorts added their positions and continued the trend to close lower at US$ 1809 per tonne from 1,816.5 per tonne during last closing. Three months LME aluminium is likely to be trading between US$1,780-1,820 per tonne today.
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As on September 12, Thursday, LME aluminium cash (bid) price stood at US$ 1773 per tonne, LME official settlement price stands at US$ 1774 per tonne; 3-months bid price stands at US$ 1808 per tonne, 3-months offer price is US$ 1809 per tonne; Dec 20 bid price stands at US$ 1883 per tonne, and Dec 20 offer price stands at US$ 1888 per tonne.
The LME aluminium opening stock dropped to 913625 tonnes. Live Warrants totalled at 706800 tonnes, and Cancelled Warrants were 206825 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1823 per tonne.
SME and SHFE Aluminium Price Trend
The most traded SHFE 1911 contract traded rangebound during the day on Thursday, holding onto high levels to end the day 0.24% up at RMB 14,425 per tonne. SMM data showed that social inventories of primary aluminium in China have fallen below 1 million tonne. This, together with expectations for greater supply pressure after November, led to the backwardation on SHFE aluminium. The premium for the 1909 contract over the 1911 contract rose to RMB 110 per tonne. SHFE aluminium is expected to continue to strengthen next week, on improving consumption and falling inventories. The contract is likely to move between RMB 14,350-14,650 per tonne.
Chinese market will remain closed from Friday September 13 to Sunday September 15 for the Mid-Autumn Festival. Shanghai Futures exchanges in mainland China remains closed from Thursday night, and reopen on Monday.
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