The US dollar declined in late trading on Friday, May 8, after official data showed a record 20.5 million job loss in the world's largest economy in April.

But the greenback was on track to post its largest weekly gain compared with the euro in more than a month, although that was more related to the European single currency concerning the European Central Bank’s asset purchases.

On Monday morning, May 11, the US dollar index, which tracks the greenback against a basket of its peers, remained below the 100 mark, while oil prices reversed an earlier slip caused by concerns over a persistent glut.

The LME was closed for the bank holiday on Friday. All LME base metals strengthened last week.

As of Thursday, May 7, LME aluminium cash (bid) price and LME official settlement price stood at US$1450 per tonne after rising from US$ 1443 per tonne on Wednesday, May 6. Throughout the entire week, the LME aluminium prices ranged between US$ 1,437 per tonne and US$ 1450 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE increased from US$ 1,799 per tonne on Friday to US$ 1,820 per tonne on Monday, May 11.

A more than 2,700 lot increase of short positions in 15 minutes knocked the most-liquid SHFE July contract to a one-week trough of RMB 12,320 per tonne in morning trade. The contract later recovered some ground to close the day 0.64 per cent lower at RMB 12,430 per tonne, producing a 0.56 per cent weekly loss. Expectations of weaker consumption will limit upside in SHFE aluminium, which is expected to meet resistance at the 60-day moving average.

The most active SHFE July contract reversed an earlier moderate slip to close Friday night 0.4 per cent higher at RMB 12,455 per tonne. Bourse data showed that aluminium stocks at SHFE-approved warehouses have fallen below 400,000 tonnes, with on-warrant stocks standing below 180,000 tonnes, which supported the backwardation on SHFE aluminium. Spot prices are expected to remain in premiums over futures before the SHFE May contract expires on Friday. The SHFE July contract is expected to move between RMB 12,300 per tonne and RMB 12,600 per tonne today.