Three-month LME aluminium slipped on strongest US dollar index in past 4 months; SHFE aluminium rose

The US dollar index held steady on Monday and climbed to the highest level at 99.211 since October 8, 2019.

Three-month LME aluminium slipped to close at US$ 1,700 per tonne and finished the day 0.17 per cent lower at US$ 1,717 per tonne, primarily attributed to stronger US dollar and rebound in inventories. The trading range is expected at US$ 1,700 per tonne to US$ 1,760 per tonne today, February 18.

As of Monday, February 17, LME aluminium cash (bid) price yet again recorded a sharp decline from US$ 1704 per tonne, as of February 14, to US$ 1678 per tonne, while LME official settlement price from US$ 1704.5 per tonne to US$ 1678.5 per tonne. 3-months bid price came in at US$ 1711 per tonne and 3-months offer price at US$ 1712 per tonne after declining by US$ 22 per tonne. Dec 21 bid price stood at US$ 1842 per tonne and Dec 21 offer price at US$ 1847 per tonne.

The LME aluminium opening stock extended decline to 1192375 tonnes from 1206450 tonnes in the previous day. Live Warrants totalled at 813875 tonnes and Cancelled Warrants 378500 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1724.68 per tonne.

SHFE Aluminium Price Trend

After a decrease of US$ 5 per tonne to US$ 1947 per tonne yesterday, Benchmark aluminium price for SHFE registered a rise of US$ 7 per tonne to US$ 1954 per tonne, as of Tuesday, February 18.

The SHFE 2004 contract slipped to its lowest in more than a week at RMB 13,660 per tonne, before it recovered some ground to close the day 0.26 per cent lower at RMB 13,690 per tonne. Investors lacked confidence in the March and April contracts, as the resumption of downstream consumers remained subdued amid the epidemic outbreak.

The most-active SHFE contract is likely to trade between RMB 13,500 per tonne and RMB 13,800 per tonne.