LME aluminium opens the week with a growth of US$133.5/t to US$3,984.50/t; SHFE price declines by US$180/t

LME aluminium opened at US$3,876 per tonne on Monday and hit a high of US$4,073.5 per tonne before closing at US$3,740 per tonne, a drop of US$100.5 per tonne or 2.62%.

Supply disruptions due to increased sanctions on Russia have caused the LME aluminium cash bid price and LME aluminium official settlement price open the week on Monday, March 7, with yet another high. For the same day, both LME aluminium cash bid price and LME aluminium official settlement price augmented by US$133.5 per tonne or 3.46% to peg at US$3,983.50 per tonne and US$3,984.50 per tonne. 3-month bid price and 3-month offer price also elevated to score at US$3,966 per tonne and US$3,968 per tonne. December 23 bid price and December 23 offer price stood at US$3,400 per tonne and US$3,405 per tonne.

LME aluminium opening stock continued to decline to total at 786475 tonnes. Live warrants and Cancelled warrants for the same day came in at 490100 tonnes and 296375 tonnes.

LME aluminium 3-month Asian Reference Price totalled at US$4,000.43 per tonne.

SHFE aluminium price

Following a hike of US$30 per tonne on March 7, the benchmark price for SHFE has declined significantly by US$180 per tonne to close at US$3,594 per tonne, as of Tuesday, March 8. The main reason for the decline is due to the shutdown of import window as LME aluminium beat SHFE aluminium, keeping the aluminium prices high.

The most-traded SHFE 2204 aluminium closed up 1.63% or RMB 385 per tonne to RMB 24,020 per tonne, with open interest down 5,938 lots to 231,811 lots.

Overnight, the most-traded SHFE 2204 aluminium contract opened at RMB 24,020 per tonne, and hit a low of RMB 22,550 per tonne, but then moved between RMB 22,750-22,900 per tonne before closing at RMB 22,700 per tonne, down RMB 1,130 per tonne or 4.74%.