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25 MARCH 2022 AL CIRCLE

LME aluminium price gallops further to US$3664/t on anticipating production disruption due to natural gas scarcity; SHFE slopes down to US$3619/t

EDITED BY : MAYURAKSHI GANGULY 2MINS READ

LME aluminium opened at US$3,670per tonne on Thursday, March 24, and closed at US$3,570per tonne, down US$115 per tonne or 3.12 per cent.

LME aluminium price gallops further to US$3664/t on anticipating production disruption due to natural gas scarcity; SHFE slopes down to US$3619/t

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LME aluminium cash bid price stood at US$3,663 per tonne with a whooping rise of 2.95 per cent or US$105 per tonne and LME aluminium official settlement price halted at US$3,664 per tonne with an increase of 2.92 per cent or US$104 per tonne, if compared with the records of the previous day.

3-month bid price hiked by US$117 per tonne to rest at US$3,675 per tonne and 3-month offer price had a raise of US$115.50 per tonne to close at US$3,675.50 per tonne. The former increased at a rate of 3.29 per cent, while the latter by 3.24 per cent.

On the same day, December 23 bid price stood at US$3,398 and December23 offer price at US$3,403, both increasing by 2.75 per cent.

The Ukrainian-Russian conflict will take its toll on the Aluminium Industry chain since disruption in the usual activity schedule of the big contributors to the industry is causing a dilemma. Sudden price hike in natural gas, coal and other necessary fuel materials is an important attribute resulting in such imbalance. Foundries and smelters need energy, which is now available at a high price, engendering disrupted production while demand is on the rise.   

LME aluminium opening stock continued to decrease from 689,575 tonnes to 684,250 tonnes as of 24+11:58 AMth of March. Live warrants totalled 437,300 tonnes recording a fall of 3,600 tonnes and Cancelled warrants declined by 1,725 tonnes resting at 246,950 tonnes.

The LME aluminium 3-month Asian Reference Price rose by 4.17 per cent to stop at US$3,678.68 per tonne.

Outlook 2022

SHFE aluminium price    

On Friday, March 25, the benchmark aluminium price for SHFE has downsized by US$34 per tonne or 0.93 per cent to stand at US$3,619 per tonne.

Overnight, the most-traded SHFE 2205 aluminium contract opened at RMB 23,190 per tonne with the highest and lowest prices at RMB 23,235 per tonne and RMB 22,920 per tonne before closing at RMB 23,055 per tonne, down RMB 225 per tonne or 0.97 per cent.

The most-traded SHFE 2205 aluminium closed up 0.91per cent or RMB 210 per tonne to RMB 23,190 per tonne, with open interest up 4,382 lots to 242,634 lots.


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EDITED BY : MAYURAKSHI GANGULY 2MINS READ

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