
The US dollar index extended its decline on Friday, after briefly hitting a high of 99.109 on Thursday. The European Central Bank on Thursday cut its deposit interest rate by 10 basis points to a record low of minus 0.5%. LME base metals rose on Friday and aluminium advanced 1.1%. The SHFE closed from Thursday night for the Mid-Autumn Festival Holiday.
LME aluminium traded lower over the last two days of the week. Three-month LME aluminium came off from highs as shorts added their positions. However, as the US dollar weakened, three-month LME aluminium rallied on Friday, gaining 1.09% to end at US$1,813 per tonne. It is expected to trade between US$1,780-1,830 per tonne today.
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As on September 13, Friday, LME aluminium cash (bid) price stood at US$ 1767 per tonne, LME official settlement price stands at US$ 1768 per tonne; 3-months bid price stands at US$ 1801.50 per tonne, 3-months offer price is US$ 1802 per tonne; Dec 20 bid price stands at US$ 1872 per tonne, and Dec 20 offer price stands at US$ 1877 per tonne.
The LME aluminium opening stock dropped to 910950 tonnes. Live Warrants totalled at 706800 tonnes, and Cancelled Warrants were 204150 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1793.40 per tonne.
SME and SHFE Aluminium Price Trend
China market has reopened today after the festive holiday. SHFE aluminium is likely to move between RMB 14,300-14,500 per tonne. SMM data showed that social inventories of primary aluminium in China have fallen for five weeks. Improving consumption in a high season in September-October and expectations of greater supply pressure in November widened the backwardation on SHFE aluminium.
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