LME aluminium prices ease as cash offer tumbles by $70/t, amid Strait of Hormuz shipping relief

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With the recent opening of the Strait of Hormuz for commercial vessels, the London Metal Exchange (LME) aluminium price is starting to ease even further from the last day’s close. The declining trend continued at the longer-dated contracts as well as at the inventory level. 

The LME cash bid rose by USD 69 per tonne or 2 per cent, shifting from USD 3,658 per tonne to USD 3,589 per tonne. Similarly, the LME cash offer finally settled at USD 3,590 per tonne, down from USD 3,660 per tonne, showing a difference of USD 70 per tonne or 2 per cent. 

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At the longer-dated contracts, the declining trend was followed by the LME 3-month bid and offer, where the bid settled down at USD 3,552 per tonne, declining from USD 3,630 per tonne, with a difference of USD 78 per tonne and the offer came down to USD 3,552.5 per tonne, from USD 3,632 per tonne, both of which owed 2.1 per cent change. 

At the forwards contracts, both the December 27 bid and offer slightly shifted downwards from the previous day’s closing price, reflecting a dip of USD 2 per tonne or 0.1 per cent. Here, the bid shifted from USD 3,122 per tonne to USD 3,120 per tonne and the offer from USD 3,127 per tonne to USD 3,125 per tonne. 

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On April 20, the LME 3-month Asian Reference Price dipped by USD 7 per tonne or 0.2 per cent, moving away from USD 3,564.5 per tonne to USD 3,557.5 per tonne. 

At the LME inventory, the opening stock and cancelled warrants plunged, but the live warrant remained unchanged. By 1 per cent, the opening stock inched down from 391,675 tonnes to 388,850 tonnes, owing to a reduction of 2,825 tonnes or 1 per cent. 

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At the same time, the cancelled warrant also shifted from 52,150 tonnes to 49,550 tonnes, reflecting a change of 2,600 tonnes or 5 per cent. As said, the live warrant remained unchanged and on April 20, it was recorded at 336,700 tonnes. 

The LME alumina platts price, on April 20, also showed no change from the previous close and is at USD 305.26 per tonne. 

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