LME aluminium price spurts to a fresh high at $3605/t on fear of logistical challenges; SHFE price mounts to $3740/t

Three-month LME aluminium opened at US$3,487 per tonne on Wednesday, March 2, and closed at US$3,576 per tonne, an increase of US$90 per tonne or 2.58 per cent.

Much to the anticipation of market analysts, including Alcoa’s chief financial officer Willian Oplinger, LME aluminium prices jumped to a fresh record peak on investors’ fear of logistical challenges that may block metal supplies due to tough sanctions on Russia. Importers may soon face higher transports costs and severe delays in shipments. On March 2, both LME aluminium cash (bid) price and LME official settlement price soared by US$109.50 per tonne to stand at US$3,604.50 per tonne and US$3,605 per tonne, respectively. 3-month bid price and 3-month offer price surged by US$106 per tonne to come in at US$3,568 per tonne and US$3,570 per tonne. December 23 bid price and December 23 offer price settled higher at US$3,265 per tonne and US$3,270 per tonne.

Metal supplies are already seeing constraint and thus, LME aluminium opening stock decreased to 809750 tonnes. Live warrants stood at 510750 tonnes, while Cancelled warrants totalled 299000 tonnes.

LME aluminium 3-month Asian Reference Price came in at US$3,491.50 per tonne.

SHFE aluminium price

On Thursday, March 3, the aluminium benchmark price for SHFE spurted to US$3,740 per tonne, up by US$106 per tonne or 2.92 per cent from US$3,634 per tonne on March 2.

The most-traded SHFE 2204 aluminium closed up 1.35 per cent or RMB 305 per tonne to stand at RMB 22,955 per tonne, with open interest up 11,673 lots to 230,936 lots.

Overnight, the most-traded SHFE 2204 aluminium contract opened at RMB 23,200 per tonne, with the highest and lowest prices at RMB 23,610 per tonne and RMB 23,080 per tonne before closing at RMB 23,290 per tonne, up RMB 335 per tonne or 1.46 per cent.