The US dollar edged up to a fresh 16-month high against a basket of key currencies on Wednesday as the US economy continued to strengthen, putting the greenback on pace for a seventh straight month of gains. Most LME and SHFE base metals ended in negative territory overnight and aluminium lost 0.5%.
LME aluminium closed the day’s trading at a new low of US$ 1946 per tonne. It started recovering at night; however, as the US dollar extended its gains, the contract reversed its earlier gains and dropped to US$1,953.5 per tonne. Finally the contract closed at US$1,955.5 per tonne overnight. It is expected to trade at US$1,940-1,980 per tonne today with a strong US dollar.
As on October 31, Wednesday, LME aluminium cash (bid) price stood at US$ 1945.50 per tonne, LME official settlement price stands at US$ 1966 per tonne; 3-months bid price stands at US$ 1966 per tonne, 3-months offer price is US$ 1966.50 per tonne; Dec 19 bid price stands at US$ 2020 per tonne, and Dec 19 offer price stands at US$ 2025 per tonne.
The LME aluminium opening stock dropped to 1047950 tonnes. Live Warrants totalled at 725725 tonnes, and Cancelled Warrants were 322225 tonnes.