LME aluminium falls after Alunorte signs agreements towards resuming operations at Brazil alumina refinery

The US dollar index fell below 95, against a basket of six major currencies. Base metals saw mixed trades. LME aluminium contract fell and closed the day’s trading at US$ 2030.5 per tonne yesterday. The metal fell sharply to a low of US$2,035 per tonne, and closed at US$2,046 per tonne after Alunorte signed agreements to resume normal operations at the alumina refinery in Brazil. It is expected to slow its decline and trade at US$2,035-2,060 per tonne today. 

As on September 6, LME aluminium cash (bid) price stands at US$ 2030 per tonne, LME official settlement price stands at US$ 2030.50 per tonne; 3-months bid price stands at US$ 2062 per tonne, 3-months offer price is US$ 2062.50 per tonne; Dec 19 bid price stands at US$ 2095 per tonne, and Dec 19 offer price stands at US$ 2100 per tonne. 

The LME aluminium opening stock dropped to 1062700 tonnes. Live Warrants totalled at 766275 tonnes, and Cancelled Warrants were 296425 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2069.35 per tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange stood at US$ 2131 today from US$ 2134 per tonne on yesterday September 6.

 The SHFE 1811 contract initially fell to an intraday low of RMB14,665 per tonne before it rebounded to a high of RMB14,745 per tonne. It then dropped and ended the trading day 0.17% lower at RMB14,685 per tonne. As shorts surged, open interests across all SHFE aluminium contracts grew 5,880 lots. The 40- and 60-day moving averages below may provide support in the short run. SMM expects the 1811 contract to trade at RMB14,550-14,680 per tonne today with spot discounts up to RMB40 per tonne.

Primary aluminium inventories across major consumption areas in China shrank this week, which is likely to provide some buoyancy to prices of futures.