Aluminium prices edge higher on LME, cash offer reach $3652/t; stocks continue to fall

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The upward trend in the London Metal Exchange (LME) aluminium price continued on April 22, irrespective of the US ceasefire on Iran. A significant rise has been seen in the cash offer as well as the longer-dated contracts. On the contrary, there has been a slight dip in the LME inventory.

On April 22, the cash bid rose by USD 38 per tonne or 1.1 per cent, shifting from USD 3,612 per tonne to USD 3,650 per tonne. Similarly, the cash offer also shifted from USD 3,613 per tonne to USD 3,652 per tonne, resulting in a difference of USD 39 per tonne or 1.2 per cent.

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The upward swing continued in the LME 3-month contract, where the bid changed from USD 3,568 per tonne to USD 3,604.5 per tonne, showing a change of USD 36.5 per tonne or 1 per cent. At the same time, the LME 3-month offer stood at USD 3,605 per tonne from USD 3,569 per tonne, with a difference of USD 36 per tonne or 1 per cent.

The trend of the future contracts also showed recovery. Both the December 2027 bid price increased by USD 16 per tonne or 0.5 per cent, where the bid rose to USD 3,148 per tonne from USD 3,132 per tonne and the offer at USD 3,153 per tonne from USD 3,137 per tonne.

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The LME aluminium 3-month Asian Reference Price stood at USD 3,613.5 per tonne on April 22, compared to USD 3,557 per tonne on April 21, indicating a drastic increase of USD 56.5 per tonne or 1.6 per cent.

On the inventory front, LME aluminium opening stock declined further to 383,275 tonnes on April 22 compared to 386,250 tonnes on April 21, reflecting a difference of 2,975 tonnes or a 1 per cent decline. Cancelled warrants, too, reduced by 2,225 tonnes or 4.6 per cent, reaching 46,050 tonnes from the previous day’s close at 48,275 tonnes. 

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On the other hand, the live warrants showed no change from the previous day's close and on April 22, they were at 335,600 tonnes.

Meanwhile, the LME alumina Platts price remained unchanged from the previous two sessions, standing at USD 305.26 per tonne on April 22.

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