LME aluminium opened at US$2165.5 per tonne yesterday, with its high and low at US$2169.5 per tonne and US$2140 per tonne, respectively, before closing at US$2141 per tonne, down 1.13 per cent.
The LME aluminium live price chart, on December 6, registered a downward trend, with the LME aluminium cash bid price and the LME aluminium official price losing US$4 per tonne or 0.19 per cent to officially close at US$2,117 per tonne and US$2,117.50 per tonne.
If we consider December 2022, the average LME price, according to Westmetall, was US$2,394.88, which fell by US$261.15 per tonne or 10.9 per cent to lock at US$2,133.73 per tonne during December 2023. The average LME aluminium price recorded in January 2022 was US$3,003.08 per tonne, and it has fallen short by US$367.08 per tonne or 12.22 per cent to reach US$2,636 per tonne on January 18, the highest registered price in 2023.
Primary aluminium production in Western Europe has been experiencing a decline since 2017. This trend has been further accelerated due to Russia's invasion of Ukraine, which led to a spike in energy prices. The recent Israel-Palestinian crisis has further aggravated the situation. According to the International Aluminium Institute (IAI), the region's output fell by 12.5 per cent last year and continues to slip this year, with an average annual production of 2.7 million tonnes in the first four months of 2023. This is a significant drop from the production levels of over 4.5 million tonnes seen fifteen years ago.
The U.S. labour market is cooling down, according to the latest ADP National Employment Report. The manufacturing PMI index below 50 per cent confirms this trend. While there are expectations for favourable policies at the end of this year, it may take time to see their impact. Aluminium prices may come under pressure due to the negative short-term macro atmosphere, but reduced inventory levels may provide some support. Nevertheless, the recycling sector is blooming due to the recent urge by the United Nations (UN) to incorporate more sustainable raw materials in the industrial loop.
London Metal Exchange graph displayed that the 3-month bid price and the 3-month offer price descended by US$6 per tonne or 0.28 per cent and US$5.50 tonne or 0.25 per cent, halting at US$2,156 per tonne and US$2,157 per tonne, respectively.
The December 24 bid price and the December 24 offer price plunged by US$7 per tonne or 0.31 per cent, stopping at US$2,275 per tonne and US$2,280 per tonne.
LME aluminium opening stock discarded 3,150 tonnes or 0.71 per cent, officially resting at 443,000 tonnes. Live warrants stood at 198,025 tonnes, shedding 2,025 tonnes or 1.01 per cent. Cancelled warrants halted at 244,975 tonnes, decreasing by 1,125 tonnes or 0.46 per cent.
LME aluminium 3-month Asian Reference Price anchored at US$2,165.08 per tonne, down US$10.71 per tonne or 0.49 per cent.
SHFE aluminium price
On December 7, the Shanghai Futures Exchange (SHFE) aluminium price chart catalogued a loss of US$11 per tonne or 0.42 per cent, with the official SHFE price marking US$2,588 per tonne.
Overnight, the most-traded SHFE 2401 aluminium contract opened at RMB 18430 per tonne, with its low and high at RMB 18400 per tonne and RMB 18485 per tonne before closing at RMB 18400 per tonne, down RMB 35 per tonne or 0.19 per cent.
SHFE 2307 aluminium added RMB 595 per tonne or 3.38 per cent to RMB 18,185 per tonne. The open interest fell 11,785 lots to 256,640 lots.
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