Three-month LME aluminium slipped to the four-years lowest at $1504/t this week; SHFE ended at $1628/t

With the beginning of this week, the US dollar rebounded against major currencies and riskier emerging market units, snapping a week of declines as investors braced for prolonged uncertainty and governments tightened lockdowns and launched monetary and fiscal measures to fight the coronavirus pandemic. However, on Tuesday, March 31, the dollar fell against a basket of major currencies, but again on April 1 advanced, with the index up 0.6 per cent at 99.52.

Three-month LME aluminium resumed its downtrend on Monday, March 30, slipping to its lowest since April 2016 at US$ 1,522 per tonne in North American trading hours before closing the day sharply lower at US$ 1,529 per tonne. On March 31, it slipped to the further lowest at US$1,507 per tonne and closed the day at US$1,525.5 per tonne. On April 1, three-month LME aluminium extended its decline and touched a four-year trough of US$1,483.5 per tonne and closed at $1,495 per tonne. However, on April 2, it rallied to US$ 1,481 per tonne and finished the day higher at US$ 1,504 per tonne.

Both LME aluminium cash (bid) price and LME official settlement price started the week (March 30) at US$ 1495 per tonne after inching down by US$ 11 per tonne from US$1506 per tonne on the previous day. The decline continued and the prices stood at US$ 1489 per tonne on March 31 and then at US$ 1463.50 per tonne on April 1. On Thursday, April 2, the prices plunged further to US$ 1448.50 per tonne. 3-months bid price and 3-months offer price also displayed a downward trend throughout the week ranging between US$ 1528 per tonne and US$ 1482.50 per tonne.

The LME aluminium opening stock, as on Monday, was at 1150775 tonnes and declined further until it registered a hike 1148750 tonnes on Tuesday to 1164200tonnes on Wednesday, April 1. But on the very next day, it declined again 1210475 tonnes. Live Warrants ranged between 994000 tonnes and 1062750 tonnes, while Cancelled Warrants between 156775 tonnes and 147725 tonnes.

LME aluminium 3-months Asian Reference Price hovered between US$ 1532.09 per tonne and US$ 1499.18 per tonne.

SHFE Aluminium Price Trend

On March 30, the Benchmark aluminium price for SHFE decreased from US$1646 per tonne to US$1629 per tonne, which on the next day, March 31, dropped marginally to US$ 1628 per tonne. But on the first day of April, the benchmark aluminium price for SHFE increased to US$ 1631 per tonne, followed by a decline again to US$1590 per tonne on April 2 and a rise on April 3 to US$1628 per tonne.