LME benchmark aluminium price shrinks by US$11.5/t to reach US$2130.5/t; SHFE aluminium price discards US$4/t

LME aluminium opened at US$2,180 per tonne on Thursday, with high and low at US$2,192.5 per tonne and US$2,162 per tonne, respectively, before closing at US$2,168 per tonne, a drop of US$46 per tonne or 2.08 per cent.

On January 18, the London Metal Exchange price chart displayed shrinking aluminium prices, with the LME aluminium cash bid price officiating at US$2,130 per tonne and the LME aluminium official settlement price closing at US$2,130.50 per tonne, with a slump of US$11.50 per tonne or 0.54 per cent.

The LME 3-month bid price halted at US$2,175 per tonne, and the LME 3-month offer price parked at US$2,176 per tonne, with a marked fall of US$14 per tonne or 0.64 per cent and US$13.50 per tonne or 0.62 per cent, respectively.

The 25 December bid price and 25 December offer price both lost US$15 per tonne or 0.61 per cent to settle at US$2,430 per tonne and US$2,435 per tonne.

Delving deep into the concepts of price fluctuations

Various factors, including macroeconomic conditions, fluctuations in currency values, environmental and regulatory developments, and supply-demand dynamics, influence aluminium prices on the London Metal Exchange (LME). Recently, increased production and inventories have led to a dip in prices. The aluminium market is complex and requires astute observation and adaptability to navigate its nuances successfully.

The LME opening stock plunged by 1,375 tonnes or 0.25 per cent, locking at 556,300 tonnes. LME live warrants dropped 1,500 tonnes or 0.42 per cent to close at 353,075 tonnes, while LME cancelled warrants pegged at 203,225 tonnes, adding 125 tonnes or 0.06 per cent.

LME aluminium 3-month Asian reference price has dived down by US$10.60 per tonne or 0.48 per cent to stop at US$2,190.21 per tonne.

SHFE aluminium price analogy 

Today, on January 19, the SHFE aluminium price has stabilised at US$2,626 per tonne, with a subtle de-escalation of US$4 per tonne or 0.15 per cent.

Overnight, the most-traded SHFE 2403 aluminium contract opened at RMB 18,745 per tonne, with high and low at RMB 18,760 per tonne and RMB 18,665 per tonne before closing at RMB 18,700 per tonne, down RMB 65 per tonne or 0.35 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.