Three-month LME aluminium stepped down from two-month highs; SHFE down to US$1869/t

The US dollar fell against a basket of rivals for a fifth straight trading day on Monday as risk sentiment improved on optimism that the worst of the economic downturn caused by the global spread of the coronavirus may be in the past.

Three-month LME aluminium pulled back from two-month highs on Monday, easing 0.58 per cent to US$ 1,538 per tonne.

As of Monday, June 1, LME aluminium cash (bid) price and LME official settlement price stood at US$ 1511.50 per tonne after declining by US$ 3.5 per tonne from the previous day. But 3-months bid price and 3-months offer price increased by US$ 3.5 per tonne to hover at US$ 1540 per tonne. Dec 21 bid price and Dec 21 offer price grew as well by US$ 6.5 per tonne to come in at US$ 1654 per tonne.

The LME aluminium opening stock stood at 1496050 tonnes. Live Warrants totalled 1283000 tonnes, and Cancelled Warrants were 213050 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1551.38 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE decreased from US$ 1877 per tonne on June 1 to US$ 1869 per tonne on Tuesday, June 2.

The most-liquid SHFE July contract ended its six consecutive days of gaining streak as longs took profits and exited. It fell to a session low of RMB 13,090 per tonne and closed slightly higher on the day at RMB 13,160 per tonne. Open interest shrank 3491 lots to 147,941 lots. The negative impact of decreasing overseas orders on overall consumption will likely intensify in June. 

The most active SHFE July contract fluctuated to close a tad weaker at RMB 13,155 per tonne in overnight trading. A slowdown in the depletion of social inventories of primary aluminium ingots in China weighed on sentiment.