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AL CIRCLE

Iran’s attack drives aluminium higher, LME cash offer hits new high at $3,585/t

EDITED BY : 3MINS READ

Iran’s attack drives aluminium higher, LME cash offer hits new high at $3,585/t

Post the Iran attack on the Middle East’s two major aluminium production sites, the Emirates Global Aluminium (EGA) and Aluminium Bahrain (Alba), the London Metal Exchange (LME) aluminium price rose even higher than the last close. The longer-dated contracts also expanded more from the previous day. Where is the aluminium price heading amidst the ongoing geopolitical crisis? 

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The LME cash bid expanded by USD 103.5 per tonne from USD 3,481 per tonne to USD 3,584.5 per tonne and the offer reached a new high at USD 3,585 per tonne from USD 3,482 per tonne, showing a difference of USD 103 per tonne or 3 per cent. 

Also read: Iranian strikes hit EGA and Alba's aluminium smelters; workers injured, facilities damaged

The upward trend continued in the LME’s 3-month bid, where it showed a change of USD 80.5 per tonne or 2.4 per cent from the previous close and is currently at USD 3,505 per tonne, up from USD 3,424.5 per tonne. The LME 3-month offer finally took place at USD 3,506 per tonne, rising from USD 3,425 per tonne, making a difference of USD 81 per tonne or 2.4 per cent. 

At the longer-dated contracts, both the LME December 27 bid and offer rose by USD 4 per tonne or 0.13 per cent, where the bid shifted from USD 3,028 per tonne to USD 3,032 per tonne and the offer from USD 3,033 per tonne to USD 3,037 per tonne. 

Must read: Key industry individuals share their thoughts on the trending topics

The 3-month Asian Reference Price also widened from the previous close following Iran’s attack on EGA and Alba, rising to USD 3,467 per tonne from USD 3,401 per tonne, indicating an expansion of USD 66 per tonne or 2 per cent. 

At the inventory level, the LME opening stock fell from 420,875 tonnes to 272,625 tonnes, resulting in a difference of 2,200 tonnes or 0.5 per cent. On the other hand, the live warrant grew by 300 tonnes or 0.11 per cent from 272,325 tonnes to 272,625 tonnes. 

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But the declining nature continued in the cancelled warrant, moving down by 2,200 tonnes or 1.5 per cent from 146,350 tonnes to 144,150 tonnes.

The LME alumina platts price on March 31 stood at USD 306.80 per tonne. 

Trading aluminium across borders? Find out the exact cost you need to bear for the embedded carbon in the product by using this CBAM calculator.

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