LME aluminium benchmark price leaps to a new high of US$3000/t in 13 years; SHFE price settles at 2.45% lower

The LME aluminium benchmark price leaped to a new milestone of US$3,000 per tonne, first time ever since 2008. Aluminium raw materials supply disruptions in Guinea coupled with production restrictions in China pushed the LME aluminium price to a 13-year high. However, both the LME aluminium cash (bid) price and LME official settlement price fell at 1450 GMT to as low as US$2,858 per tonne but closed the day higher at US$2,949 per tonne and US$2,950 per tonne, up 1.8 per cent from the previous day. The prices are likely to continue to grow, thanks to a rapid increase in China’s domestic alumina price and expected production cut at Yunnan Province during September-December.

3-month bid price and 3-month offer price grew to US$2,949.50 per tonne and US$2,950 per tonne, respectively. December 22 bid price stood at US$2,787 per tonne and Dec 22 offer price at US$2,792 per tonne.

LME aluminium opening stock decreased from 1317725 tonnes to 1309450 tonnes. Live warrants amounted to 824700, while cancelled warrants totalled 484750 tonnes. LME aluminium 3-month Asian Reference Price settled at US$2,967.88 per tonnes as of September 13.

SHEF Aluminium Price Trend

Benchmark aluminium price for SHFE, on the other hand, fell by US$89 per tonne or 2.45 per cent to come in at US$3,542 per tonne, following four consecutive days of hike from US$3,371 per tonne to US$3,631 per tonne.

The most-traded SHFE 2110 aluminium closed up 4.38 per cent to RMB 23610 per tonne, with open interest down 38142 lots to 234000 lots. 

The most-traded SHFE 2110 aluminium contract opened at RMB 23,505 per tonne last night, with the highest and lowest prices at RMB 23,530 per tonne and RMB 22,535 per tonne before closing at RMB 23,710 per tonne, down by 2.82 per cent.