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04 OCTOBER 2018 AL CIRCLE

LME aluminium prices climbed 3 per cent to 5-week high as Hydro shuts Alunorte

EDITED BY : BEETHIKA BISWAS 2MINS READ

LME aluminium prices climbed 3 per cent and to their highest in nearly five weeks on Wednesday after the news broke that Norsk Hydro said it would halt production at its Alunorte alumina refinery in Brazil, generating fear of tighter alumina supply.

Aluminum outperformed all other base metals while China market is off trading due to for a week-long National Day holiday. The contract closed trading at US$2166.50 per tonne on Wednesday October 3. Reaching an intraday high of US$2,181 per tonne, the three-month aluminium price is now trading at its highest level since June 2018.

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As on October 3, LME aluminium cash (bid) price stands at US$ 2166 per tonne, LME official settlement price stands at US$ 2166.50 per tonne; 3-months bid price stands at US$ 2175 per tonne, 3-months offer price is US$ 2176 per tonne; Dec 19 bid price stands at US$ 2220 per tonne, and Dec 19 offer price stands at US$ 2150 per tonne. 

The LME aluminium opening stock dropped further to 979800 tonnes. Live Warrants totalled at 608050 tonnes, and Cancelled Warrants were 371750 tonne.

LME aluminium 3-months Asian Reference Price is hovering at US$ 2124 per tonne.

The global market for alumina has been tight this year due to 50% capacity cut at Hydro Alunorte refinery in Brazil, U.S. sanctions on Rusal and a strike at Alcoa's alumina refineries in Western Australia. Now the news of full curtailment of operation at Alunorte will put further pressure on the prices of alumina as well as aluminium.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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