Market staggers with a drastic decline in LME offers by 1.79% while inventories hold steady

Aluminium prices on London Metal Exchange (LME) dropped across most contracts on February 4, reflecting a drastic decline and broad pullback from the previous session, while exchange inventories continued with an unchanged record.

The LME aluminium cash bid price continued to slip, reaching USD 3,047 per tonne on February 4 from USD 3,102 per tonne on February 3, a decline of 1.77 per cent. The cash offer price followed a similar trend, easing to USD 3047.5 per tonne from USD 3,103 per tonne, also down 1.79 per cent day-on-day.

The futures market saw the LME aluminium 3-month bid price edging downwards to USD 3,075 per tonne, compared with USD 3,112.5 per tonne the previous day, recording a 1.2 per cent decrease. It was followed by the 3-month offer price, which slipped to USD 3,076 per tonne from USD 3,113 per tonne, decreasing by 1.19 per cent.

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Prices further along the curve saw improvement. The December 27 bid price decreased as well, reaching USD 3,025 per tonne on February 4 from USD 3,035 per tonne on February 3, softening to 0.33 per cent. The December 27 offer price, too, going down on the graph, reduced to USD 3,030 per tonne from USD 3,040 per tonne, depicting a similar 0.33 per cent decline.

Meanwhile, the LME aluminium 3-month Asian Reference Price went on a similar declining trend at USD 3,069.5 per tonne on February 4, lowering by 1.19 per cent from USD 3,106.5 per tonne on the previous session.

No changes were recorded on the inventory front on February 4. LME aluminium opening stocks remained the same at 495,175 tonnes as recorded on February 3. Live warrants also stayed fixed at 440,650 tonnes. Similarly, cancelled warrants recorded the same figures of 54,525 tonnes. 

Only the raw materials market saw an increase, with the LME alumina Platts price hitting USD 310.05 per tonne, up from USD 306 on the previous day by 1.32 per cent.

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