The US dollar reached multi-month highs last week and reversed some of the gains by the end of the week. The strong dollar along with the absence of strong market fundamentals put pressure on LME and the LME official settlement price plunged to the lowest since August 2017. The LME aluminium contract started the week with a gain at US$1980.5 per tonne and continued falling to reach US$ 1946 per tonne on November 1. The contract closed the week slightly higher at US$ 1967 per tonne on Friday November 2. Though it is slightly higher than the lowest, it continued its three-day losing streak and ended the week in the black.
LME aluminium is likely to trade at US$1,960-2,000 per tonne over next week.
{alcircleadd}As on November 2, Friday, LME aluminium cash (bid) price stood at US$ 1966.50 per tonne, LME official settlement price stands at US$ 1967per tonne; 3-months bid price stands at US$ 1984.50 per tonne, 3-months offer price is US$ 1985 per tonne; Dec 19 bid price stands at US$ 2040 per tonne, and Dec 19 offer price stands at US$ 2045 per tonne.
The LME aluminium opening stock dropped to 1051425 tonnes. Live Warrants totalled at 728350 tonnes, and Cancelled Warrants were 323075 tonnes.
LME aluminium 3-months Asian Reference Price is hovering at US$ 1990.29 per tonne.
SME and SHFE Aluminium Price Trend
The benchmark aluminium price on Shanghai Metal Exchange hovered within a range from US$ 1983 to US$ 2032 over the last week.
As SHFE base metals contracts rallied across the board in Friday afternoon, the SHFE 1901 contract also broke pressure at the daily moving average and rose to an intraday high of RMB 14,010 per tonne. Without strong support, the contract edged down from highs to settle at RMB 13,970 per tonne. The contract is expected to trade low as the market is lacking cost support and LME counterpart is trading lower. The market is relaxed with positive development in talks between US President Donald Trump and Chinese President Xi Jinping.
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