SHFE aluminium price sheds US$10/t in New Year’s wake; LME market remains closed for Winter Holidays

Today, on January 2, the SHFE price chart has shown deflecting aluminium price trends, with the official SHFE aluminium price halting at US$2,746 per tonne with a loss of US$10 per tonne or 0.36 per cent from US$2,756 per tonne, recorded on December 29. It is safe to say that 2024 has started with a slow tempo, and it is quite natural, given the present geopolitical circumstances. 

On November 2, last year, the SHFE aluminium price was US$2,635 per tonne, which rose by US$111 per tonne or 4.21 per cent in two months to close at what it is today. 

The SHFE market was closed at last Friday’s night session. SHFE 2307 aluminium added RMB 595 per tonne or 3.38 per cent to RMB 18,185 per tonne. The open interest fell by 11,785 lots to 256,640 lots.

Market analysis 

The United States Federal Reserve is presently weighing the decision of whether to raise interest rates, while the recovery of consumption has proven weaker than anticipated. In addition, aluminium ingot inventories in certain areas have begun to accumulate, and falling prebaked anode and coal prices have weakened cost support for aluminium prices. It should be observed whether SHFE aluminium will fall below RMB 18,000 per tonne in the near term.

LME aluminium price 

London Metal Exchange (LME) is closed due to the New Year festivities. The last recorded LME aluminium price can be traced back to December 29, last year, when it stood at US$2,335.50 per tonne.