July 8 (LTIT) –The US dollar inched higher against a basket of currencies on Tuesday, July 7, holding above the near two-week low hit in the previous session, as investors turned uneasy over new coronavirus flare-ups and local lockdowns in some countries.

Three-month LME aluminium held onto one-month highs on Tuesday, ending flat at US$ 1,635 per tonne in choppy trading. It is likely to continue to move between US$ 1,620-1,660 per tonne today.

LME aluminium price recorded a slight rise to close at $1596.5/t

As of Tuesday, July 7, LME aluminium cash (bid) price and LME official settlement price increased by US$ 3.5 per tonne to stand at US$ 1596.5 per tonne. 3-months bid price and 3-months offer price stood at US$ 1630 per tonne, up by US$ 4 per tonne from the previous day. Dec 21 bid price and Dec 21 offer price came in at US$ 1726 per tonne compared to US$ 1725 per tonne.

The LME aluminium opening stock decreased from 1624775 tonnes to 1618025 tonnes. Live Warrants hovered at 1416300 tonnes, while Cancelled Warrants 201725 tonnes.

LME aluminium 3-months Asian Reference Price stood at US$ 1632.60 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE decreased to stand at US$ 2033 per tonne, following six consecutive days of hike.

The most-liquid SHFE August contract pulled back from highs as investors covered their bullish positions. It gave up overnight gains and slipped to an intraday low of RMB 14,005 per tonne, closing the day at RMB 14,055 per tonne, down 0.11 per cent on the day. Low inventories will underpin the contract tonight.

The load-up of short positions sent the most-liquid SHFE August contract to a session-low of RMB 13,945 per tonne in overnight trading, before the contract recovered some ground to end down 0.85 per cent at RMB 13,995 per tonne as shorts trimmed positions. The spot market weakened, and inventories in some regions rebounded. The SHFE August contract is expected to move between RMB 13,900-14,200 per tonne today, with support at the 10-day moving average under scrutiny.