LME aluminium price drops again to US$ 3583/t for Russian military immobilisation; SHFE falls at US$ 3569/t

LME aluminium opened at US$3,607 per tonne on Tuesday and closed at US$3,449 per tonne, down US$156 per tonne or 4.33 per cent.

If compared with the records of the exact previous day, LME aluminium cash bid price stood at US$3,581 per tonne and LME aluminium official settlement price halted at US$3,583. Both recorded a fall of 0.64 per cent or US$23 per tonne.

3-month bid price and 3-month offer price came to rest at US$3,606 per tonne and US$3,608 per tonne. The former faced a decline of US$9 per tonne or 0.25 per cent and the later fell by US$8 per tonne or 0.22 per cent.  

On the same day, December 23 bid price stood at US$3,440 per tonne and December23 offer price at US$3,445, both witnessing a downfall of 0.44 per cent.

LME aluminium opening stock continued to decrease from 671,025 tonnes to 663,225 tonnes as of 29^th of March. Live warrants totalled 443,050 tonnes recording stagnancy and Cancelled warrants declined by 7,800 tonnes or 3.42 per cent resting at 220,175 tonnes.

The LME aluminium 3-month Asian Reference Price has risen by 0.64 per cent to stop at US$3,627 per tonne.

Russia is one of the major producers of nickel, aluminium, copper and natural gas in the world. Owing to the European sanctions on the country and the ban implemented by Australia, these industries are suffering dearly. Moreover gas imported from Russia must be bought with rubles as laid by President Putin. All of these changes in the system continue to cause aluminium and other metal price fluctuation and a stable market cannot be achieved until the Ukraine-Russia conflict resolves. According to recent reports Russia is about to cut military activities in and around Kyiv, Ukraine which can be a turning point for the metal industry as many secluded units might again come into play.

SHFE aluminium price 

On Wednesday, March 30th, the benchmark aluminium price for SHFE fell by US$47 per tonne or 1.3 per cent to stand at US$3,569 per tonne.

Overnight, the most-traded SHFE 2205 aluminium contract opened at RMB 22,410 per tonne, with the highest and lowest prices at RMB 22,700 per tonne and RMB 22,360 per tonne before closing at RMB 22,610 per tonne, down RMB 350 per tonne or 1.52 per cent.

The most-traded SHFE 2205 aluminium closed down 0.22 per cent or RMB 50 per tonne to RMB 22,960 per tonne, with open interest down 12,926 lots to 225,333 lots.