Three-month LME aluminium ended at US$1,702/t; SHFE aluminium to remain weak in the short term

The US dollar index was little changed on Wednesday as coronavirus headlines sapped sentiment. 
The dollar index, which tracks the greenback against a basket of other currencies, edged up 0.14% and ended at 99.12. LME base metals fell for the most part. LME aluminium went flat.

Three-month LME aluminium ended at US$1,702 per tonne after slipped to a session low of US$1,690 per tonne. LME aluminium inventories extended their slide, which coupled with better-than-expected US new home sales data, underpinned aluminium prices. The contract is likely to trade between US$1,680-1,720 per tonne today. 

As on Wednesday February 26, LME aluminium cash (bid) price stands at US$ 1676 per tonne, LME official settlement price stands at US$ 1676.5 per tonne; 3-months bid price stands at US$ 1696 per tonne, 3-months offer price is US$ 1698 per tonne; Dec 21 bid price stands at US$ 1825 per tonne, and Dec 21 offer price stands at US$ 1830 per tonne.

The LME aluminium opening stock dropped to 1103575 tonnes. Live Warrants totalled 791850 tonnes, and Cancelled Warrants were 311725 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1700.33 tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE decreased to US$1911 per tonne on Thursday, 27 February 2020.

The most-active SHFE 2004 contract closed the day 0.07% weaker at RMB13,490 per tonne. SHFE aluminium is expected to remain weak as consumption recovers slowly. The contract is expected to trade at RMB13,400-13,700 per tonne.