LME weekly recap: LME aluminium benchmark price closed the week 6% higher; SHFE price grew after initial fluctuations

The LME aluminium benchmark price flaunted a steady growth this week after a drop on the first day. Both LME aluminium cash bid price and LME aluminium official settlement price decreased by 0.77 per cent on Monday, September 25, to stand at US$2,182 per tonne and US$2,182.50 per tonne.

On September 26, the prices picked up by US$12 per tonne and US$12.50 per tonne, bringing the LME aluminium cash bid price  to US$2,194 per tonne and the LME aluminium official settlement price to US$2,195 per tonne. On September 27, the prices inched up by US$1 per tonne to US$2,195 per tonne and US$2,196 per tonne. 

The prices continued to grow the next day by US$36.50 per tonne and US$36 per tonne to peg at US$2,231.50 per tonne and US$2,232 per tonne, respectively. On Friday, LME aluminium cash bid price and LME aluminium official settlement price closed the week at US$2,307 per tonne and US$2,307.50 per tonne, registering a further hike of 3.38 per cent. Therefore, in the entire week, the LME aluminium benchmark price stood 5.7 per cent or US$ 125 per tonne higher.

The 3-month bid price and 3-month offer price also witnessed a decline at the beginning of the week of about 1 per cent to US$2,224 per tonne and US$2,225 per tonne, but followed by an increase of US$12 per tonne on Tuesday, September 26 to US$2,194 per tonne and US$2,195 per tonne. On Wednesday, September 27, the prices again recorded a fall of US$12.50 per tonne to US$2,225 per tonne and US$2,226 per tonne. However, in the next two days, both the 3-month bid price and 3-month offer price climbed up back-to-back by 5 per cent in total to close the week at US$2,340 per tonne and US$2,342 per tonne, respectively.

LME aluminium opening stock displayed a downtrend through the week by 10,500 tonnes from 496,550 tonnes to 486050 tonnes as of Friday, September 29.

SHFE aluminium price

The SHFE aluminium benchmark price kick-started the week on Monday, September 25, with a rise of US$28 per tonne or 1.05 per cent to US$2,685 per tonne but witnessed a fall on the following day by US$10 per tonne to US$2,675 per tonne. However, on Wednesday, September 27, the price recovered and returned to US$2,685 per tonne and increased further on September 28 by 0.63 per cent to US$2,702 per tonne. On Friday, September 29, the Shanghai Futures Exchange was closed due to the Mid-Autumn Festival and National Day holiday, and thus, there was no price update.