
The US dollar strengthened on Tuesday, after the US decided to delay tariffs on certain Chinese goods while outright removing some items from the tariff list, reigniting hopes that Washington and Beijing could reach a resolution. Signs of easing US-China trade tensions also bolstered oil prices and LME base metals overnight. LME aluminium rose 0.9% and SHFE aluminium fell 0.2%.
LME aluminium closed lower during the day’s trading but regained some losses at night. Three-month LME aluminium rallied from earlier lows to a high of US$1,793 per tonne overnight, before it closed the day 0.88% higher at US$1,785.5 per tonne. It is expected to trade between US$1,750-1,850 per tonne today.
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As on August 13, Tuesday, LME aluminium cash (bid) price stood at US$ 1730.50per tonne, LME official settlement price stands at US$ 1731 per tonne; 3-months bid price stands at US$ 1761 per tonne, 3-months offer price is US$ 1761.50 per tonne; Dec 20 bid price stands at US$ 1855 per tonne, and Dec 20 offer price stands at US$ 1860 per tonne.
The LME aluminium opening stock dropped to 984300 tonnes. Live Warrants totalled at 705675 tonnes, and Cancelled Warrants were 278625 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1772 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) increased to US$ 2011 per tonne today from US$ 2004 per tonne on Tuesday.
The most-active SHFE October contract extended increases from overnight as it climbed to an intraday high of RMB 14,285 per tonne, before it retreated and closed 1.25% higher on the day at RMB 14,200 per tonne on Tuesday August 13. The October contract then weakened to a low of RMB 14,105 per tonne overnight, as China Hongqiao Group said the flooding caused by Typhoon Lekima had limited impact on its aluminium production. It later recovered some ground to end 0.21% lower at RMB 14,155 per tonne. SHFE aluminium is unlikely to hand back all the gains from the recent rally, in view of a bullish prospect for the medium to long term. It is expected to trade between RMB 14,100-14,200 per tonne today, with spot prices in a discount of RMB 10 per tonne to a premium of RMB 30 per tonne.
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