LME benchmark aluminium price grows 0.35% after hitting 11-weeks high, up US$135/t M-o-M; SHFE drains 0.92% today

LME aluminium opened at US$2,329 per tonne yesterday, with its high and low at US$2,331 per tonne and US$2,296.5 per tonne, respectively, before closing at US$2,300 per tonne, down US$26.5 per tonne or 1.14 per cent.

On March 26, the London Metal Exchange registered considerable escalations in aluminium prices and premiums, with the LME cash bid price stopping at US$2,275 per tonne and the LME offer price settling down at US$2,275.50 per tonne, with a rise of US$8 per tonne or 0.35 per cent. 

The LME aluminium price was at an 11-week high yesterday, and it has grown by US$135 per tonne or 6.3 per cent on a Month-on-Month scale from US$2,140.50 per tonne recorded on February 26. China’s Yunnan province has been the driving force behind this supply-demand gap and, thus, the price hike. It has been forecasted that until production in China gains pace, there will be a persistent price hike, as the country is the biggest producer of aluminium globally. 

Similarly, the 3-month bid and 3-month offer prices have ascended by US$5.50 per tonne or 0.26 per cent each to close at US$2,324 per tonne and US$2,324.50 per tonne. The December 25 bid and offer prices refrained from any change, staying hooked at US$2,523 per tonne and US$2,528 per tonne. 

The opening stock has dampened by 3,825 tonnes, or 0.68 per cent, to 555,775 tonnes, while the Live and Cancelled Warrants are locked at 340,950 tonnes and 214,825 tonnes, the latter with a slump of 3,825 tonnes, or 1.75 per cent. 

The 3-month Asian Reference Price remained at US$2,316.35 per tonne, with a noticeable addition of US$113.10 per tonne, or 5.13 per cent. 

SHFE aluminium price 

Today, on March 27, the SHFE aluminium price has docked at US$2,683 per tonne, with a plunge of US$25 per tonne or 0.92 per cent. If we consider the SHFE aluminium price on February 27, we can find a Month-on-Month levitation of US$64 per tonne or 2.44 per cent. 

Overnight, the most-traded SHFE 2405 aluminium contract opened at RMB 19,490 per tonne, with high and low at RMB 19,520 per tonne and RMB 19,420 per tonne before closing at RMB 19,460 per tonne, down RMB 30 per tonne or 0.15 per cent. 

SHFE 2307 aluminium added RMB 595 per tonne or 3.38 per cent to RMB 18,185 per tonne. The open interest fell 11,785 lots to 256,640 lots.