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After the soaring records on April 7, the London Metal Exchange (LME) aluminium prices cooled at the close of the April 8 session, as a reaction to the mutually agreed two-week ceasefire announced by the US President Donald Trump on April 8. With the limited trade flow allowed at the tentative reopening of the Strait of Hormuz, the market panic recorded in the last few weeks has begun to ease, as evident from the figures at the close of the session on April 8.
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The LME aluminium cash bid price declined slightly by 2.24 per cent from the previous close, slipping to USD 3,519 per tonne from USD 3,599.5 per tonne. The offer price closed at USD 3,520 per tonne, down 2.22 per cent day-on-day from USD 3,600 per tonne.
The LME three-month contract edged downwards as in the previous close. The aluminium three-month bid as well as offer prices reflected a 1.25 per cent decrease as the bid dropped from USD 3,507 per tonne on April 7 to USD 3,463 per tonne on April 8, while the offer was slumped from USD 3,509 per tonne to USD 3,465 per tonne.
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The downward trend continued at the longer-dated contracts. Both the December 27 bid and offer prices dipped by 0.07 per cent. The bid was down from USD 2,985 per tonne to USD 2,983 per tonne. The offer fell from USD 2,990 per tonne to USD 2,988 per tonne.
The 3-month Asian Reference Price continued on the declining graph, down from the previous close, settling at USD 3,455 per tonne on April 8, slipping 0.6 per cent from USD 3,476 per tonne on April 7.
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In case of the inventories, the LME aluminium opening stocks continued to decline, down from 411,950 tonnes on April 7 to 409,900 tonnes, decreasing by 0.5 per cent. Live warrants followed a similar trend, declining by 0.15 per cent from 269,000 tonnes to 268,600 tonnes. Cancelled warrants, standing at 135,275 tonnes, also recorded a drop of 3.99 per cent from 140,900 tonnes on the previous close.
The LME alumina platts price on April 8 remained unchanged from the previous close at USD 309.29 per tonne.
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