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The May 8 session on the London Metal Exchange (LME) aluminium prices witnessed a modest recovery from the declining trend experienced in the previous two sessions. 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 a slight improvement by 0.04 per cent from the closing figures on the May 7 session. The bid inched up from USD 3,558.5 per tonne to USD 3,560 per tonne, while the offer price climbed from USD 3,559 per tonne to USD 3,560.5 per tonne.
The LME aluminium three-month bid price rose 0.06 per cent, up from USD 3,509 per tonne on May 7 to USD 3,511 per tonne on May 8. Meanwhile, the offer price gained 0.04 per cent, increasing modestly from USD 3,510 per tonne to USD 3,511.5 per tonne.
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The downward trend of the previous close reappeared in the longer-dated contracts. Both the December 2027 bid and offer price decreased by 0.22 per cent on the close of May 8. As the bid price settled at USD 3,118 per tonne, down from USD 3,125 per tonne, the offer price closed at USD 3,123 per tonne, declining from USD 3,130 per tonne.
The LME aluminium three-month Asian Reference Price closed at USD 3,503 per tonne on May 8, up 0.29 per cent from USD 3,493 per tonne on May 7.
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On the inventory front, LME aluminium opening stock recorded further decline, slipping 0.55 per cent from 360,225 tonnes on May 7 to 358,225 tonnes on May 8. Live warrants remained unchanged at 331,725 tonnes. Cancelled warrants continued to dip from 26,500 tonnes to 24,050 tonnes, decreasing by 9.25 per cent.
LME alumina Platts price showed no change, settling at USD 307.15 per tonne on May 8.
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