Three-month LME rallied to US$1,725/t amidst US dollar hike to three-year high; SHFE decreased by US$8/t

The US dollar rose on Wednesday to near a three-year high against a basket of other currencies, as a decline in the number of new coronavirus cases in China and expectations for more stimulus measures boosted investors’ appetite for risk.

Three-month LME aluminium rallied after fell to a session low of US$ 1,710 per tonne, ending up 0.2 per cent on the day at US$ 1,725 per tonne. Both open interest and transaction volumes shrank. A strong US dollar is likely to keep LME aluminium between US$ 1,710 per tonne to US$ 1,750 per tonne today, February 20.

As of Wednesday, February 19, LME aluminium cash (bid) price stood at US$ 1684 per tonne after rising by US$ 3.5 per tonne from US$ 1680.5 per tonne on the previous day, while LME official settlement price rose from US$ 1681 per tonne to US$ 1686 per tonne. 3-months bid price came in at US$ 1712 per tonne and 3-months offer price at US$ 1712.5 per tonne. Dec 21 bid price stood at US$ 1840 per tonne and Dec 21 offer price at US$ 1845 per tonne.

The LME aluminium opening stock declined from 1177425 tonnes, as of February 18, to 1162300tonnes on February 19. Live Warrants totalled at 813875 tonnes and Cancelled Warrants 348425 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1719.50per tonne.

SHFE Aluminium Price Trend

After growing by US$ 3 per tonne to US$ 1,957 per tonne on February 19, the Benchmark aluminium price for SHFE has decreased by US$ 8 per tonne to US$ 1949 per tonne on February 20.

The most-active SHFE 2004 contract recovered from earlier losses to close the day barely changed at RMB 13,710 per tonne. The most-traded SHFE contract is hovering at RMB 13,600-13,800 per tonne.