The US dollar index, which measures the greenback against a basket its rivals, rose on Wednesday, as investors grew more optimistic that Iran’s attack on US forces in Iraq was unlikely to escalate into a full-blown regional conflict.
Three-month LME aluminium extended its decline on Wednesday, shedding 0.96 per cent to end at US$1,800.5 per tonne. The build-up of short positions primarily accounted for the loss. LME aluminium is expected to trade at US$1,780-1,820 per tonne today.
{alcircleadd}As on January 8, Wednesday, LME aluminium cash (bid) price after dipping from US$ 1793.50 per tonne stood at US$ 1771.50 per tonne, while LME official settlement price at US$1771.50 after inching down from US$1794 per tonne. 3-months bid price stood at US$ 1805 per tonne and 3-months offer price US$ 1806 per tonne. Dec 20 bid price clocked at US$ 1940 per tonne and Dec 20 offer price at US$ 1945 per tonne.
The LME aluminium opening stock decreased to 1439300 tonnes, compared with1451575 tonnes on January 7. Live Warrants totalled at 934500 tonnes and Cancelled Warrants were 504800 tonnes.
LME aluminium 3-months Asian Reference Price hovered at US$ 1822.00 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE (Shanghai Future Exchange) continued to extend growth on Thursday, January 9, to come in at US$2074 per tonne.
The most-liquid SHFE 2002 contract recovered losses from the previous day as departing shorts lifted the contract above 20-, five-, and 10- day moving averages, to an intraday high of RMB 14,190 per tonne. It finished the day 0.53 per cent higher at RMB 14,155 per tonne.
The most-traded SHFE 2002 contract wavered to close 0.11 per cent weaker at RMB 14,080 per tonne overnight. It is likely to move at RMB 13,900 per tonne to RMB 14,100 per tonne. Spot premiums are seen at RMB 70-90 per tonne over the SHFE 2001 contract.
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