LME aluminium traded weak on Monday regaining some losses overnight; SHFE aluminium remains rangebound

The US dollar held near a two-month high on Monday as investors await the latest monetary policy decision from the Federal Reserve as well as developments from US-China trade talks. Most LME base metals closed higher on Monday. LME aluminium advanced 0.4%, while SHFE aluminium gained 0.5%.

LME aluminium settled lower during Monday’s closing but regained some losses at night.  Three-month LME aluminium recovered from earlier losses to close 0.44% higher at US$1,814.5 per tonne on Monday night. It is expected to trade at US$1,790-1,830 per tonne today.

As on July 29, Monday, LME aluminium cash (bid) price stood at US$ 1774 per tonne, LME official settlement price stands at US$ 1774.50 per tonne; 3-months bid price stands at US$ 1798 per tonne, 3-months offer price is US$ 1799 per tonne; Dec 20 bid price stands at US$ 1902 per tonne, and Dec 20 offer price stands at US$ 1907 per tonne.

The LME aluminium opening stock dropped to 1016800 tonnes yesterday. Live Warrants totalled at 764150 tonnes, and Cancelled Warrants were 252650 tonnes.

LME aluminium 3-months Asian Reference Price is hovering at US$ 1804 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange (SME) increased to US$ 2023 per tonne today from US$ 2015 per tonne on Monday.

The most-liquid SHFE September contract lacked upward momentum after loaded-up longs buoyed it to a high of RMB 13,900 per tonne yesterday. Data release of lower social inventories of primary aluminium again pulled up the contract, after it hovering around the 10-day moving average, and settled it at RMB 13,880 per tonne, down 0.18% on the day. As longs loaded up their positions, the September contract rose to RMB 13,950 per tonne overnight before it closed 0.5% higher at RMB 13,940 per tonne. Aluminium prices remained firm overnight, despite a robust US dollar. SHFE aluminium is expected to trade between RMB 13,840-14,000 per tonne today, with spot prices in a discount of RMB 20 per tonne to a premium of RMB 20 per tonne.  Support from several moving averages below will keep the contract in a narrow range, but a weaker LME aluminium could pressure on the contract.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.