LME aluminium price declined to US$1565.5/t on increasing opening stock; SHFE price continued to grow

The US dollar continued to trade lower against all of the European currencies on Tuesday ahead of the Federal Reserve’s monetary policy announcement. 

Three-month LME aluminium recovered after declined, but it failed to end higher on the day as it lost 0.12 per cent on the day at US$ 1,603 per tonne. Open interest increased 1,810 lots to 862,000 lots as shorts loaded up their positions.

On Tuesday, June 9, LME aluminium cash (bid) price and LME official settlement price decreased from US$ 1569.50 per tonne on June 8 to US$ 1565.50 per tonne. 3-months bid price and 3-months offer price also declined from US$ 1596 per tonne to US$ 1592.50 per tonne. Dec 21 bid price and Dec 21 offer price came in at US$ 1695 per tonne, down by US$ 5 per tonne from US$ 1700 per tonne.

The LME aluminium opening stock increased from 1525650 tonnes on June 8 to 1541150 tonnes on June 9. Live Warrants totalled 1335375 tonnes, and Cancelled Warrants were 205775 tonnes.

LME aluminium 3-months Asian Reference Price hovered at US$ 1609.50per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE recorded a hike of US$ 3 per tonne from US$ 1961 per tonne on the previous day to stand at US$ 1964 per tonne, as of Wednesday, June 10.

The most-liquid SHFE July contract registered another solid gain on Tuesday, scaling its highest since February 21 at RMB 13,650 per tonne before closing up 1.65 per cent at RMB 13,555 per tonne. The strong rally in futures forced spot prices in east China into discounts as the influx of foreign cargoes and sell-offs by some smelters eased availability tightness, which may hamper upside potential in SHFE aluminium.

The most-liquid SHFE July contract climbed steadily overnight and closed at RMB 13625 per tonne, with the trading range expected at RMB 13,550-13,850 per tonne today.