

As we are aware that the current geopolitical tension has created a temporary halt to the passage of goods through the Strait of Hormuz, the London Metal Exchange (LME) aluminium price soared to an all-time high. However, now the market is slowly but steadily witnessing a return to the range it was previously in.
{alcircleadd}The LME cash bid moved down by USD 201.5 per tonne, shifting from USD 3,399.5 per tonne to USD 3,198 per tonne. The cash offer also changed by USD 200 per tonne, from USD 3,400 per tonne to USD 3,200 per tonne, where both the bid and offer reflected a 6 per cent change from the previous day’s close.
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The downward trend continued at the longer-dated contracts, where both the LME 3-month bid and offer changed by USD 225 per tonne or 7 per cent. On March 19, the bid moved from USD 3,379.5 per tonne to USD 3,154.5 per tonne and the offer from USD 3,380 per tonne to USD 3,155 per tonne.
Further along the curve, the LME December 2027 bid and offer witnessed a decline of USD 220 per tonne or 7.2 per cent from the previous day's close. The market saw that the December 27 bid inched down from USD 3,030 per tonne to USD 2,810 per tonne and similarly, the December 27 offer went down from USD 3,035 per tonne to USD 2,815 per tonne.
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The 3-month Asian Reference Price on March 19 changed from USD 3,400 per tonne to USD 3,252 per tonne, reflecting a contract of USD 148 per tonne or 4.4 per cent.
The LME aluminium inventory also changed, but not as drastically as the price. The opening stock shifted to 436,625 tonnes from 440,325 tonnes, indicating a change of 3,700 tonnes or 1 per cent. Similarly, the cancelled warrant changed to 159,675 tonnes from 163,575 tonnes, reflecting a change of 3,900 tonnes or 2.4 per cent. However, the LME live warrants showed no change from the last day and are still currently at 273,050 tonnes.
The LME alumina platts showed no change from the last day and is currently at USD 300.14 per tonne.
To know more about the influences of the Middle East crisis affecting the global aluminium industry, book the report “Global ALuminium Industry Outlook 2026".
Note: Image generated by AI for referential purpose
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