The US dollar fell on Tuesday as optimism about the outcome of a fresh round of US-China trade talks in Washington this week prompted traders to scale back their safe-haven greenback holdings. Most LME base metals traded higher on Tuesday and aluminium edged up 0.2%. SHFE base metals, except for lead, ended higher overnight and aluminium inched up 0.2%.
LME aluminium closed the day’s trading at US$ 1833.50 per tonne. The metal fluctuated on Tuesday, ending marginally higher at US$1,857 per tonne. LME aluminium is likely to trade at US$1,840-1,870 per tonne today.
{alcircleadd}As on February 19, LME aluminium cash (bid) price stood at US$ 1833 per tonne, LME official settlement price stands at US$ 1833.50 per tonne; 3-months bid price stands at US$ 1861.5 per tonne, 3-months offer price is US$ 1862 per tonne; Dec 19 bid price stands at US$ 2005 per tonne, and Dec 19 offer price stands at US$ 2010 per tonne.
The LME aluminium opening stock decreased to 1255725 tonnes. Live Warrants totalled at 683625 tonnes, and Cancelled Warrants were 572100 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1857.75 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange increased to US$ 2000 per tonne today from US$ 1981 per tonne on February 19.
The SHFE 1904 contract ended around the Bollinger middle band at RMB13,465 per tonne, after shorts weighed it to a low of RMB13,435 per tonne yesterday. This ceased its consecutive increase for five trading days.
The SHFE 1904 contract traded rangebound overnight after a higher open. The contract closed at RMB13,485 per tonne. The contract is likely to trade at RMB13,400-13,500 per tonne today, with spot discounts at RMB50-10 per tonne against the SHFE March contract.
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