Concerns over Russian metal supply augment LME aluminium prices; SHFE ascends by US$20/t

LME aluminium opened at US$2,570 per tonne in the previous trading day, with its high and low at US$2,620 per tonne and US$2,561.50 per tonne respectively before closing at US$2,610 per tonne, up US$23 per tonne or 0.89 per cent.

The London Metal Exchange graph registered ascending prices on April 18, with the LME aluminium cash bid and the LME aluminium official price gaining US$19.50 per tonne or 0.75 per cent and US$19 per tonne or 0.74 per cent to close at US$2,599.50 per tonne and US$2,600 per tonne, respectively.

Nonferrous metals prices surged on Friday, driven by concerns over Russian metal supply following sanctions. London aluminium saw its sixth consecutive weekly gain, rising 1.4 per cent to US$2,652 per tonne. The ban by the LME on Russian metal produced after April 13, in compliance with new U.S. and U.K. sanctions due to the Ukraine conflict, fueled market volatility. LME aluminium, up 6.3 per cent weekly, reflected the impact.

The ban led to increased price volatility and market nervousness, as indicated by rising cancelled warrants for copper, aluminium, and lead. Russia's significant role as an aluminium supplier intensified these concerns, impacting global metal prices. This scenario underscores the intricate relationship between geopolitical tensions and commodity markets, particularly affecting aluminium prices amid supply disruptions.

The LME 3-month bid price and the LME 3-month offer price have marked an increase of US$28.50 per tonne or 1.11 per cent and US$27 per tonne or 1.05 per cent, to settle at US$2,591.50 per tonne and US$2,592 per tonne.

The LME 25-December bid price and the 25-December offer price have ascended by US$6 per tonne or 0.22 per cent to officiate at US$2,693 per tonne and US$2,698 per tonne.

The opening stock has slumped by 4,600 tonnes or 0.89 per cent to close at 509,250 tonnes. Live and cancelled stocks parked at 214,275 tonnes and 294,975 tonnes.

The LME Asian reference price has soared by US$38.35 per tonne or 1.5 per cent to arrive at US$2,599.17 per tonne.

SHFE aluminium price 

The Shanghai Futures Exchange (SHFE) aluminium benchmark price has stopped at US$2,821 per tonne, with a subtle increase of US$20 per tonne or 0.71 per cent.

Overnight, the most-traded SHFE 2406 aluminium contract opened at RMB 20,475 per tonne, with high and low at RMB 20,490 per tonne and RMB 20,265 per tonne before closing at RMB 20,380 per tonne, down RMB 5 per tonne or 0.02 per cent.