Nonferrous metals on the LME mostly increased, and the US dollar index halted its continuous declines and advanced 0.13 per cent.

Three-month LME aluminium strengthened 0.91 per cent to end at US$ 1,725.50 per tonne on Tuesday, July 28, after hitting its highest in nearly five months at US$ 1,728 per tonne earlier in the session. It is likely to move at US$ 1,700-1,740 per tonne today.

Both LME aluminium cash (bid) price and LME official settlement price, as of Tuesday, increased by US$ 9.5 per tonne to stand at US$ 1671 per tonne. 3-months bid price and 3-months offer price stood at US$ 1709 per tonne, up by US$ 8.5 per tonne from US$ 1700.50 per tonne on July 27. Dec 21 bid price and Dec 21 offer price came in at US$ 1793.50 per tonne compared to US$ 1784.50 per tonne on the previous day.

The LME aluminium opening stock decreased from 1668500 tonnes to 1658175 tonnes. Live Warrants hovered at 1384025 tonnes, while Cancelled Warrants at 274150 tonnes.

LME aluminium 3-months Asian Reference Price stood at US$ 1710.13 per tonne.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE extended growth for the third consecutive day to stand at US$ 2094 per tonne on Wednesday, July 29, 2020.LME

The most-liquid SHFE September contract extended a rally from Monday, as longs continued to load up their positions, sending the contract to an intraday high of RMB 14,400 per tonne this morning. The contract ended the day 0.84 per cent higher at RMB 14,330 per tonne, with open interest rising 8,623 lots to 108,345 lots. A weak US dollar and domestic low inventories of primary aluminium may keep the contract robust tonight. 

The SHFE September contract rose 1.43 per cent to end at RMB 14,500 per tonne in overnight trading. Ample liquidity and continued robustness in consumption buoy SHFE aluminium prices. The contract is expected to trade at RMB 14,300-14,700 per tonne today.