Rising energy prices lift LME aluminium benchmark price by US$52.5/t; SHFE price climbs up by US$5/t

LME aluminium opened at US$2,430 per tonne last Friday and closed at US$2,490 per tonne, an increase of US$54.5 per tonne or 2.24 per cent.

Rising energy prices are affecting the aluminium industry more than ever. As a result, aluminium smelter production costs are also on the rise, which in turn affects aluminium prices.

As per the data, both LME aluminium cash bid price and LME aluminium official settlement price had augmented by US$51.5 per tonne or 2.10 per cent and US$52.5 per tonne or 2.14 per cent on Friday, August 26. The former closed at US$2,493 per tonne, while the latter settled at US$2,495 per tonne.

3-month bid price and 3-month offer price surged by US$58 per tonne to record at US$2,484.50 per tonne and US$2,485.50 per tonne.

On the same day, December 23 bid price and December 23 offer price heightened by US$60 per tonne or 2.43 per cent and 2.42 per cent to stand at US$2,525 per tonne and US$2,530 per tonne.

LME aluminium opening stock stood at 278025 tonnes. Live warrants and Cancelled warrants came in at 183600 tonnes and 94425 tonnes.

On the other hand, the LME aluminium 3-month Asian Reference Price inched down by US$1.6 per tonne or 0.65 per cent to close at US$2,432.99 per tonne.

SHFE aluminium price 

On Monday, August 29, the benchmark aluminium price for SHFE climbed up by US$5 per tonne or 0.18 per cent to stand at US$2,747 per tonne.

The most-traded SHFE 2209 aluminium closed down 0.42 per cent or RMB 80 per tonne to RMB 18,860 per tonne, with open interest down 30,000 lots to 95,282 lots.

The most-traded SHFE 2209 aluminium contract opened at RMB 18,970 per tonne at last Friday’s night session and rose to RMB 19,270 per tonne before closing at RMB 19,095 per tonne, up RMB 235 per tonne or 1.25 per cent.