
The US dollar continued to climb against its major rivals yesterday. Base metals ended mixed. LME aluminium climbed 0.89% and SHFE aluminium went flat.
LME aluminium traded flat yesterday. Three-month LME aluminium registered slight gain during the day but outperformed most other base metals as it climbed to a high of US$1,820 per tonne last night and closed 0.89% higher on the day at US$1,820.5 per tonne. However, pressure above will cap its upside room and keep it between US$1,780-1,830 per tonne today.
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As on July 9, Tuesday, LME aluminium cash (bid) price stood at US$ 1782.50 per tonne, LME official settlement price stands at US$ 1783 per tonne; 3-months bid price stands at US$ 1802 per tonne, 3-months offer price is US$ 1803 per tonne; Dec 20 bid price stands at US$ 1908 per tonne, and Dec 20 offer price stands at US$ 1913 per tonne.
The LME aluminium opening stock dropped substantially below the one million mark plunging down to 948650 tonnes on Monday. Live Warrants totalled at 635500 tonnes, and Cancelled Warrants were 313150 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1806 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange (SME) dropped slightly from yesterday to US$ 2000 per tonne.
The most traded SHFE August contract fell below the five-day moving average to an intraday low of RMB 13,720 per tonne yesterday before some long-buying bolstered it to close the trading day 0.18% lower at RMB 13,745 per tonne. The August contract then retreated after rose to a high of RMB 13,790 per tonne, ending flat at RMB 13,755 per tonne overnight. Today, it is expected to hover at RMB13,650-13,800 per tonne with pressure above. Weak supply and demand as well as lower power and alumina costs kept SHFE aluminium weak and rangebound.
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