LME aluminium falls by 10% after US hints at easing sanctions on Rusal

LME aluminium registered the biggest one-day decline in history and lost close to 10 per cent. The metal tumbled to a low of US$ 2,237 per tonne following the US Treasury Department’s announcement to extend the time limit for US and non-US citizens to wind up business with Rusal, according to SMM. LME aluminium closed lower at US$ 2452 per tonne on Monday April 23. 

The US Treasury on Monday said that it would consider lifting the sanctions if Russian aluminium giant Rusal’s major shareholder Oleg Deripaska ceded control of the company

SMM expects LME aluminium to remain weak in the near term and test support at the 20-day moving average with a trading range of US$ 2,170-2,270 per tonne.

As on April 23, LME aluminium cash (bid) price stands at US$ 2451.50 per tonne, LME official settlement price stands at US$ 2452 per tonne; 3-months bid price stands at US$2438 per tonne, 3-months offer price is US$ 2439 per tonne; Dec 19 bid price stands at US$2322 per tonne, and Dec 19 offer price stands at US$ 2327 per tonne. 

The LME aluminium opening stock has dropped to 1385025 tonnes. Live Warrants totalled at 935650 tonnes, and Cancelled Warrants were 449375 tonne.

LME aluminium 3-months ABR price is hovering low at US$2505.83 tonne.

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange dropped from US$ 2377 per tonne on April 23 to 2293 per tonne on April 24.

According to SMM, the SHFE 1806 contract hit a low of RMB 14,220 per tonne before it regained some losses with shorts covering. SMM expects it to trade rangebound at RMB 14,300-14,550 per tonne in the near term with spot premiums at RMB 70-30 per tonne.

The US dollar is likely to gain further support from the US economic data to be released today. Base metals are expected to trade weakly rangebound today.