LME aluminium slips back as key raw material prices drop in major markets

LME aluminium retraced US$2,100 per tonne mark on Tuesday, November 28, as key raw material prices in China, one of the world’s major markets, dropped further. The light metal edged slightly higher to US$2,109.5 per tonne on Monday, November 27. Though the rest of the financial year outlook for the contract remains moderately positive, volatility is expected to continue in the short term.

As on November 28, LME official cash buyer aluminium price (Bid Price) stands at US$2,099.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,100 per tonne, 3M Bid Price is US$2,112.50 per tonne, 3M Offer Price is US$2,113.50 per tonne, Dec1 Bid Price is US$2,160 per tonne, and Dec1 Offer Price is US$2,165 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1117725 tonnes, total Live Warrants is 893125 tonnes, and Cancelled Warrant is 224600 tonnes.   

SME and SHFE Aluminium Price Trend

The benchmark aluminium price on Shanghai Metal Exchange has slid further down from US$2,209 per tonne on November 28, to US$2,185 per tonne on November 29.  

In China domestic market, spot aluminium shipment has improved slightly. Shanghai Metals Market updates that spot inventory, as on November 28, stands at 1.7 million tonnes. SHFE aluminium price movement as on November 28 is represented by SMM as below:

Analysts hold a pessimistic outlook as far as consumption of aluminium next year is concerned. In the medium term, aluminium prices are expected to move downwards due to weakening of raw material prices, slow growth of demand, and strengthening of dollar.