LME aluminium price falls below US$2500/t amid decreased stock after marking two-month high; SHFE gains $6/t

On Wednesday, August 28, three-month LME aluminum contract opened at US$2,543 per tonne, with a high of US$2,548.50 per tonne and a low of US$2,484 per tonne, closing at US$2,484 per tonne, down by US$62.50 per tonne.

After experiencing skyrocketing growth over six days by US$226.50 per tonne during August 19-27, reaching two-month high, the LME aluminium benchmark price suffered a loss of US$40.50 per tonne overnight reaching below US$2500 per tonne level. On Wednesday, August 28, LME aluminium cash bid price and LME aluminium official settlement price decreased by US$39.50 per tonne and US$40.50 per tonne, respectively, to clock at US$2,478.50 per tonne and US$2,479.50 per tonne.

3-month bid price and 3-month offer price contracted by US$34 per tonne and US$35 per tonne to arrive at US$2,501 per tonne and US$2,502 per tonne as of August 28. December 25 bid price and December 25 offer price amounted to US$2,623 per tonne and US$2,628 per tonne, down by US$32 per tonne from the previous day.

LME aluminium opening stock totalled 860,225 tonnes on August 28. Compared it to the end of July, the LME stock is 4.42 per cent or 39,775 tonnes down from 900,000 tonnes. On the same day, Live Warrants stood at 345,300 tonnes, down by 1,325 tonnes from the previous day and 13,950 tonnes from the end of July. Cancelled Warrants on August 28 stood at 514,925 tonnes.

In contrary, LME aluminium 3-month Asian Reference Price gained US$6.13 tonne on August 28 to peg at US$2,521.65 per tonne.

SHFE aluminium price

On Thursday, August 29, the SHFE aluminium benchmark price reached US$2,781 per tonne, marking a drop of US$6 per tonne for the second consecutive day. On Wednesday, August 28, the price dipped by US$2 per tonne and settled at US$2,787 per tonne.

Overnight, the most-traded SHFE aluminum 2410 contract opened at RMB 19,845 per tonne, reaching a high of RMB 19,925 per tonne and a low of RMB 19,810 per tonne, and closed at RMB 19,860 per tonne, down RMB 45 per tonne from the previous close.