Three months LME aluminium continued recovering from lows and shot higher at US$1,793/t last night; SHFE closed higher

The US dollar held its earlier losses against a basket of currencies as payroll processor ADP said US private hiring came in stronger than expected in August, while it revised lower its job reading for July.

Three-month LME aluminium closed higher for the third consecutive trading day as departing shorts send it 1.22% higher on the day at US$1,793 per tonne. LME aluminium is likely to trade between US$1,740-1,800 per tonne. 

As on September 5, Thursday, LME aluminium cash (bid) price stood at US$ 1753.50 per tonne, LME official settlement price stands at US$ 1754.50 per tonne; 3-months bid price stands at US$ 1777 per tonne, 3-months offer price is US$ 1778 per tonne; Dec 20 bid price stands at US$ 1852 per tonne, and Dec 20 offer price stands at US$ 1857 per tonne.

The LME aluminium opening stock dropped to 918925 tonnes. Live Warrants totalled at 706675 tonnes, and Cancelled Warrants were 212250 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1768 per tonne.

SME and SHFE Aluminium Price Trend

Profit-taking knocked the most traded SHFE 1910 contract below the five-day moving average to an intraday low of RMB 14,310 per tonne in the final hour of trading, before the contract rebounded above the five-day moving average and ended 0.14% lower at RMB 14,330 per tonne on Thursday. The October contract then found support from the five-day moving average and pared some gains to finish 0.14% higher at RMB 14,370 per tonne overnight, after rose to highs around RMB 14,390 per tonne. Trading range is expected at RMB 14,300-14,450 per tonne today.

SMM data showed that social inventories of primary aluminium in China dropped 27,000 tonnes in the first week of September, suggesting that consumption picked up in a peak season. This is expected to bolster SHFE aluminium tonight, but upside from current highs will be limited.