LME aluminium price extended growth for the third straight day to $1651/t; SHFE price declined to $2058/t

The US dollar gave up some of its earlier gains recorded on Wednesday, July 22, as investors retreated from the safe-haven asset, following struggles by the US to reach a consensus on further stimulus measures.

Three-month LME aluminium fell as much as over 1 per cent last night amid concerns about mounting US-China tensions, ending lower on the day at US$ 1,689.5 per tonne, following a session low of US$ 1,675 per tonne. 

On Wednesday, July 22, both LME aluminium cash (bid) price and LME official settlement price extended growth for the third consecutive day to stand at US$ 1651 per tonne. 3-months bid price and 3-months offer price stood at US$ 1686 per tonne, up by US$ 3.5 per tonne from US$ 1682.50 per tonne on July 21. Dec 21 bid price and Dec 21 offer price came in at US$ 1774.50 per tonne compared to US$ 1768.50 per tonne on the previous day.

The LME aluminium opening stock decreased from 1652200 tonnes to 1648225 tonnes. Live Warrants hovered at 1376250 tonnes, while Cancelled Warrants at 271975 tonnes.

LME aluminium 3-months Asian Reference Price stood at US$ 1699.50 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE decreased to US$ 2058 per tonne on Thursday, July 23, following a rise of US$ 52 per tonne in total in the last four days, with an intermittent drop of US$ 5 per tonne on July 21.

The most-liquid SHFE August contract again broke up the 10-day moving average to hit a session high of RMB 14,450 per tonne before noon, and finished at RMB 14,390 per tonne, up 1.02 per cent on the day. Domestic social inventories of primary aluminium edged up but SHFE on-warrant inventories stayed at low levels. Support from fundamental may keep near-term aluminium prices stable. The impact of macro development on sentiment will be monitored. 

The most-traded SHFE contract reversed decline from overnight and traded higher in early trades this morning, supported by healthy consumption and premiums in the spot market. The contract finished lower at RMB 14,385 per tonne overnight. It is seen hovering between RMB 14200-14600 per tonne today with LME aluminium at US$ 1,670-1,710 per tonne.