Three-month LME aluminium stood as low as US$1,722.5/tonne this week; Dollar index plunged lowest since January 2

The US dollar fell on the first two day of the week. On Monday, the dollar index, which tracks the greenback against a basket of other currencies, slipped to the lowest level since January 16, at 97.18. On the next succeeding day, it declined further lowest since January 8 at 96.92. On March 4, the currency recovered the ground, with index bounced back 0.43 per cent and hit an intraday high of 97.6; but on March 5, again slipped to a fresh eight-week low to the lowest level since January 2 at 96.51.

Three-month LME aluminium ended 0.88% higher on March 2 at US$1,716.5 per tonne. On March 3, it rose to an intraday high of US$ 1,734 per tonne and finished 0.67 per cent higher on the day at US$ 1,728 per tonne. But on March 4, the three-month LME aluminium slipped to as low as US$ 1,717 per tonne overnight before easing some losses and ending down 0.26 per cent on the day, while on March 5, it trimmed some losses after it dipped to a session low of US$ 1,722.5 per tonne.

LME aluminium cash (bid) price began the week, March 2, at US$ 1,684 per tonne, registering a rise from US$ 1662.5 per tonne, as of Friday, February 28, while LME official settlement price stood at US$ 1684.5 per tonne from US$ 1663 per tonne on the previous day. The growth continued in the two subsequent days. On March 3 and 4, LME aluminium cash (bid) price rallied to US$ 1705.5 per tonne and US$ 1722.5 per tonne, while LME official settlement price rose to US$ 1706 per tonne and US$ 1723.5 per tonne, respectively. But towards the end of the week, the LME prices dipped. On March 5, LME aluminium cash (bid) price slipped to US$ 1714 per tonne, and on March 6 to US$ 1686.50 per tonne. LME official settlement price inched down to US$ 1715 per tonne and US$ 1687.00 per tonne on those two days.

3-months bid price rallied from US$ 1699 per tonne to US$ 1708.00 per tonne over the week, while 3-months offer price from US$ 1700 per tonne to US$ 1709.00 per tonne. LME aluminium opening stock plunged throughout the week from 1071875 tonnes to 1030750 tonnes.

SHFE Aluminium Price Trend

On Monday, March 2, the benchmark aluminium price for SHFE decreased from US$ 1,893 per tonne to US$ 1,882 per tonne, followed by a hike on Tuesday, March 3, to US$ 1,899 per tonne. On Wednesday, the price declined again to US$ 1,888 per tonne, while on Thursday, it recorded a marginal rise to US$ 1,889 per tonne. On Friday, March 6, the price returned to US$ 1,882 per tonne.