
The US dollar index rose last Friday to the highest since May 2017. The offshore Chinese yuan headed toward its biggest monthly decline in 25 years as the two countries prepared for the implementation of new tariffs on Sunday. LME base metals closed mixed while SHFE metals ended mostly lower. LME aluminium gained 0.17% and SHFE aluminium slipped 0.11%.
Three-month LME aluminium regained losses after a higher US dollar drove it below all moving averages to a low of US$1,736.5 per tonne during Friday night. It closed higher for the second consecutive trading day, at US$1,757 per tonne, up 0.17% on the day. LME aluminium is likely to trade between US$1,740-1,780 per tonne today.
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As on August 30, Friday, LME aluminium cash (bid) price stood at US$ 1712 per tonne, LME official settlement price stands at US$ 1712.50per tonne; 3-months bid price stands at US$ 1741 per tonne, 3-months offer price is US$ 1741.50 per tonne; Dec 20 bid price stands at US$ 1827 per tonne, and Dec 20 offer price stands at US$ 18325 per tonne.
The LME aluminium opening stock dropped to 927000 tonnes. Live Warrants totalled at 677725 tonnes, and Cancelled Warrants were 249275 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1751 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) stood at US$ 1993 per tonne on Friday, August 30.
The most traded SHFE 1910 contract inched up above the five-day moving average before it eased to close flat at RMB 14,260 per tonne on Friday, as longs took profits. SHFE aluminium traded range bound at highs, as investors digested the news that an aluminium smelter in Shandong will recover. The October contract then consolidated at highs but ended down 0.18% on the day at RMB 14,225 per tonne. News about resumption of a domestic smelter and expectations of demand pick up in September kept sentiment mixed. Today, the contract is seen hovering between RMB 14,180-14,300 per tonne with limited upside or downside room. Anticipation of consumption improvement in September will give support to the prices.
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