Growing demand concerns push LME aluminium price to almost a 4-month low; SHFE price loses over $150/t M-o-M

On Monday, July 22, the three-month LME aluminium contract opened at US$2,345 per tonne, reached a high of US$2,364.50 per tonne, a low of US$2,296 per tonne, and closed at US$2,314.50 per tonne, down US$35.50 per tonne or 1.51 per cent.

The above downward graph of the LME aluminium benchmark price establishes a relentless decline in the price since the beginning of July. The previous day, both LME aluminium cash bid price and LME aluminium official settlement price nosedived by US$53 per tonne over the weekend to reach US$2,258.50 per tonne and US$2,259 per tonne, respectively.

The prices stood at their lowest in almost four months amid growing concerns about demand, particularly lacklustre conditions in China, the top consumer of aluminium.

The 3-month bid price and 3-month offer price shrank by US$51 per tonne and US$51.50 per tonne on July 22, reaching US$2,316 per tonne and US$2,316.50 per tonne. The December-25 bid and December-25 offer price stood at US$2,475 per tonne and US$2,480 per tonne, down by US$53 per tonne from US$2,528 per tonne and US$2,533 per tonne on July 19.

LME aluminium opening stock shed off 3,875 tonnes over the weekend to arrive at 956,200 tonnes on July 22. Live Warrants and Cancelled Warrants totalled 407,025 tonnes and 549,175 tonnes, respectively. While the former remained restrained, the latter decreased by 3,875 tonnes from 553,050 tonnes the previous day.

LME aluminium 3-month Asian Reference Price contracted US$40.46 per tonne to stand at US$2,337.91 per tonne on July 22.

SHFE aluminium price

On Tuesday, July 23, the SHFE aluminium benchmark price continued to decline by US$22 per tonne to peg at US$2,660 per tonne, marking a week-on-week decline of US$67 per tonne from US$2,727 per tonne and a month-on-month plunge of about US$158 per tonne from US$2,818 per tonne.

Overnight, the most-traded SHFE aluminium 2409 contract opened at RMB 19,360 per tonne, reaching a high of RMB 19,400 per tonne and a low of RMB 19,300 per tonne, and closed at RMB 19,360 per tonne, down RMB 90 per tonne or 0.46 per cent.