SHFE loses US$53/t closing at US$2694/t due to energy crisis in China; LME remains shut for bank holiday

On Monday, August 29, the benchmark aluminium price for SHFE slipped down the graph by US$53 per tonne or 1.93 per cent to stand at US$2,694 per tonne.

The most-traded SHFE 2210 aluminium contract opened at RMB 18,675 per tonne last night and rose to RMB 18,755 per tonne before closing at RMB 18,680 per tonne, up RMB 5 per tonne or 0.03 per cent.

The most-traded SHFE 2210 aluminium closed down 0.64 per cent or RMB 120 per tonne to RMB 18,675 per tonne, with open interest up 6,223 lots to 171,655 lots.

The energy supply crunch in Sichuan is now gradually easing down owing to sufficient rainfall in China. Slowly the smelters are also travelling towards recovery; mainly, those in Guangyuan city are gaining their average speed. The domestic supply shortcomings were also being met. In the European sector energy crisis is a big concern at this moment, and some of the smelters are also shutting down. 

On the demand side, the processing sector was curtailed for various reasons; with supply being sluggish, demand in Zhejiang and Jiangsu became better after the power supply condition had improved.

Overall, the aluminium market is still very tender and weak because of the prevailing war, and there is no balance between supply and demand. 

LME aluminium price 

London Metal Exchange was closed on Monday, August 29, due to a bank holiday, with the primary aluminium benchmark price stagnant at US$2,493 per tonne and the official price coming in at US$2,495 per tonne.