LME aluminium price edged higher at US$1553.5/t during June 1-5; SHFE price slightly up at US$1880/t

The US dollar on Monday, June 1, fell against a basket of rivals for a fifth straight trading day as risk sentiment improved on optimism that the worst of the economic downturn caused by the global spread of the coronavirus may be in the past. On June 2, easing further, the dollar index, which gauges the greenback against a basket of major currencies, fell for the sixth straight day and tumbled the lowest since March 13 at 97.4335. On June 3, the dollar index decreased further for the seventh straight day at 97.1882. On June 4, it came in at 96.5774, the lowest since March 12.

Three-month LME aluminium pulled back from two-month highs on Monday, easing 0.58 per cent to US$ 1,538 per tonne, while on Tuesday, June 2, it ended at a 10-week peak of US$1,559 per tonne, up 1.37% on the day. On June 3, the three-month LME aluminium closed 0.42 per cent higher at US$ 1,565.5 per tonne. However, on June 4, it fluctuated to close a tad lower at US$1,564.5 per tonne.

LME aluminium cash (bid) price and LME official settlement price also began the week starting June 1, with a plunge from US$ 1515 per tonne to US$ 1511.50 per tonne. The price continued to decline on Tuesday, June 2, to stand at US$ 1499.50 per tonne. However, on June 3, both LME aluminium cash (bid) price and LME official settlement price rebounded to US$ 1526 per tonne, which on June 4 and June 5 extended to US$ 1535 per tonne and US$ 1553.50 per tonne. This shows that although the prices started the week with two consecutive declines, but edged higher at the end of the week.

The LME aluminium opening stock on June 1 stood at 1496050 tonnes and then increased on June 2 to 1505550 tonnes. On June 3, it declined to 1500900 tonnes while the LME prices rose. On June 4, it recorded a slight rise to 1526250 tonnes and then remained almost flat at 1521325 tonnes on June 5. Live Warrants ranged between 1283000 tonnes and 1305725 tonnes, while Cancelled Warrants hovered at 213050-201850 tonnes.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE began the week on June 1 with a hike from US$ 1864 per tonne to US$ 1877 per tonne. But on June 2 and June 3, it recorded declines to US$ 1869 per tonne and US$ 1867 per tonne. On June 4, the SHFE price rebounded to US$ 1878 per tonne and continued to grow on June 5 to stand at US$ 1880 per tonne. This shows that the benchmark aluminium price for SHFE edged higher over the week by US$ 16 per tonne.