Three-month LME aluminium hits six-week high on supply worries; SHFE gains 0.40%

The dollar increased after five straight days of losses. The dollar index, which tracks the greenback against a basket of other currencies, gained 0.34% and ended at 97.55. LME base metals closed higher for the most part with the SHFE complex trading mixed. LME aluminium rose 1.17%, and SHFE aluminium increased 0.40%.

Three-month LME aluminium hit a six-week high of US$1,816 per tonne on short-covering amid supply concerns after Rio Tinto Ltd flagged that it may cut output or shut its aluminium smelter in New Zealand. LME aluminium is likely to trade at US$1,800-1,820 per tonne today. 

As on November 4, Monday, LME aluminium cash (bid) price stood at US$ 1786.50 per tonne, LME official settlement price stands at US$ 1787 per tonne; 3-months bid price stands at US$ 1781 per tonne, 3-months offer price is US$ 1782 per tonne; Dec 20 bid price stands at US$ 1858 per tonne, and Dec 20 offer price stands at US$ 1863 per tonne.

The LME aluminium opening stock dropped to 953900 tonnes. Live Warrants totalled at 788475 tonnes, and Cancelled Warrants were 165425 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1789.80 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE (Shanghai Future Exchange) increased to US$ 2012 per tonne today November 5, 2019.

The most traded SHFE 1912 contract wavered around highs during the daytime session, after hitting a four-week high of RMB13,960 per tonne on Friday night. It advanced 0.76% on the day to end at RMB13,945 per tonne. The most-liquid SHFE December contract rose but at a slower pace. Domestic lower inventories of primary aluminium will support the contract at RMB13,850-14,000 per tonne today.