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The May 19 session closed with London Metal Exchange (LME) aluminium prices reporting surges on wide margins. Overcoming the modest gains in the previous close, the cash and contracts gained considerable momentum. The sharp rise was largely driven by tightening global supply signals, falling exchange inventories and renewed buying momentum across near- and long-term contracts.
{alcircleadd}The cash price and near-term contracts recorded improved figures, while the bearish momentum of the longer-dated contracts and the declining stocks indicated a worldwide supply crisis.
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The LME aluminium cash bid as well as offer prices recorded an improvement of 0.8 per cent from the closing figures on the May 18 session. The bid inched up from USD 3,635 per tonne to USD 3,664 per tonne, while the offer climbed from USD 3,637 per tonne to USD 3,665 per tonne.
The LME aluminium three-month bid price rose 1.35 per cent, up from USD 3,563 per tonne on May 18 to USD 3,611 per tonne on May 19. Meanwhile, the offer price gained 1.32 per cent, increasing from USD 3,565 per tonne to USD 3,612 per tonne.
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The longer-dated contracts saw a rebound with notable spikes on the close of May 19. The December 2027 bid price increased by a stark 1.53 per cent, settling at USD 3,193 per tonne, up from USD 3,145 per tonne. Similarly, the offer price gained momentum and reached USD 3,198 per tonne, surging by 1.52 per cent from USD 3,150 per tonne.
The LME aluminium three-month Asian Reference Price closed at USD 3,602 per tonne on May 19, up 0.92 per cent from USD 3,569 per tonne on May 18.
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The downward trend of LME aluminium reappeared on the inventory front. Opening stock slipped 0.65 per cent from 344,000 tonnes on May 18 to 341,775 tonnes on May 19. Live warrants, dropping from 283,875 tonnes, reached 271,250 tonnes, and recorded a decline of 4.45 per cent. Cancelled warrants, on the contrary, reported a consecutive gain, surging from 57,900 tonnes on the previous close to 69,325 tonnes on May 19, representing a 19.73 per cent rise.
LME alumina Platts price remained unchanged at USD 305.40 per tonne on May 19.
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