LME aluminium price displayed a bullish trend this week amidst rising opening stock; SHFE edged higher

The US dollar was roughly flat on the first day of the week, April 13, amid thin trades with Europe out on holiday. The dollar index, which tracks the greenback against a basket of other currencies, was little changed on the day and finished at 99.504. On Tuesday, it declined to 98.875 as risk appetite returned to the market after the better-than-expected economic data from China dispelled some concerns about the coronavirus impact on the world’s second-largest economy. On Wednesday, it rebounded at 99.573, and then at 99.9 on Thursday, April 16. 

Three-month LME aluminium rebounded on Tuesday, April 14, after the decline, closing up 2.09 per cent higher on the day at US$ 1,515 per tonne with short covering their positions. On Wednesday, it closed at US$1,516 per tonne, down 0.2 per cent.

Both LME aluminium cash (bid) price and LME official settlement price showed a rising trend this week. Starting at US$ 1456 per tonne on Tuesday, April 14, it rose to US$ 1469.50 per tonne on Wednesday, April 15, and further expanded to US$ 1476 per tonne and US$ 1482.50 per tonne on April 16 and 17. The data represents a growth of US$ 26.5 per tonne or 2 per cent over the week. 3-months bid price and 3-months offer price ranged between US$ 1495 per tonne and US$ 1520 per tonne throughout the week, reflecting an increase of US$ 25 per tonne. Dec 21 bid price and Dec 21 offer price hovered between US$ 1629.50 per tonne and US$ 1648 per tonne.

The LME aluminium opening stock stood at 1248000 tonnes on Tuesday, April 14, and rose to 1261550 tonnes on Wednesday, April 15, but remained flat at 1261475 tonnes on the next day, April 16. On Friday, April 17, the stock dipped by 2325 tonnes to 1259150 tonnes. Live Warrants ranged between 1117575 tonnes and 1137900, while Cancelled Warrants130425 tonnes and 121250 tonnes.

LME aluminium 3-months Asian Reference Price rose from US$ 1499.57per tonne to US$ 1531.76 per tonne over the week.

SHFE Aluminium Price Trend

Benchmark aluminium price for SHFE started the week with a rise of US$ 8 per tonne to stand at US$ 1,672 per tonne, as of Monday, April 13. On April 14, the price dipped by about US$ 2 per tonne to US$ 1,670 per tonne, but April 15 onwards, it started expanding until April 17, ranging between US$ 1,681 per tonne and US$ 1,715 per tonne.