
The US dollar dropped against its rivals on Thursday, registering a six-day losing streak, as investors monitored US-China trade and data releases. LME base metals closed mixed on Thursday. Aluminium shed 0.5%. SHFE aluminium also declined 0.4%.
Three-month LME aluminium slipped to its lowest since November 26 at US$1,743.5/t on Thursday, before it ended down 0.54% at US$1,749/t. The unwinding of long positions primarily accounted for the loss in LME aluminium.
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As on December 5, Thursday, LME aluminium cash (bid) price stood at US$ 1755.50 per tonne, LME official settlement price stands at US$ 1756 per tonne; 3-months bid price stands at US$ 1746 per tonne, 3-months offer price is US$ 1748 per tonne; Dec 20 bid price stands at US$ 1805 per tonne, and Dec 20 offer price stands at US$ 1810 per tonne.
The LME aluminium opening stock increased again to 1285275 tonnes. Live Warrants totalled at 1134550 tonnes, and Cancelled Warrants were 150725 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1760 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE (Shanghai Future Exchange) dropped to US$ 1989 per tonne today December 6, 2019.
A smaller weekly decline in social inventories of primary aluminium grew concerns about weaker demand and prompted investors to cover their long position, which sent the most-liquid SHFE contract to an intraday low of RMB 13,910 per tonne. However, the decline was capped as bearish position also departed at the RMB 13,920 per tonne level, ending the contract at RMB 13,930 per tonne, down 0.14% on the day. The SHFE 2001 contract lost 0.36% to RMB13,890 per tonne overnight, as longs covered their positions. It is expected to waver between RMB 13,860-13,900 per tonne today. Spot premiums are seen at RMB 40-60 per tonne over the SHFE 1912 contract.
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