The previous trading day, LME aluminium opened at US$2,311 per tonne, reached a high of US$2,327.5 per tonne and a low of US$2,272.5 per tonne, and closed at US$2,273.5 per tonne, down US$41.5 per tonne, a decrease of 1.79 per cent.
Following a growth the previous day, both LME aluminium cash bid price and LME aluminium official settlement price slumped by US$22 per tonne or 0.97 per cent and US$23.5 per tonne or 1.04 per cent. The prices as of August 1 (Tuesday) stood at US$2,228 per tonne and US$2,228.50 per tonne.
The drop in prices can be attributed to weak demand and ample supply. In Yunnan, a major Chinese production hub, improved rainfall increased hydropower availability, enabling smelters to resume operations. This led to a 6.2 per cent annual increase in primary aluminium output in June, reaching 3.76 million tonnes, the highest level since November 2014.
As per the LME price graph, 3-month bid price and 3-month offer price descended by US$9 per tonne or 0.39 per cent and US$10 per tonne or 0.43 per cent to dock at US$2,286 per tonne and US$2,287 per tonne.
December 25 bid price and December 25 offer price also dipped by US$10 per tonne or 0.40 per cent to halt at US$2,445 per tonne and US$2,450 per tonne. LME aluminium 3-month Asian Reference Price, arrived at US$2,203.50.
LME aluminium opening stock came in at 929325 tonnes. Live warrants and Cancelled warrants settled at 359250 tonnes and 570075 tonnes.
SHFE aluminium price
On Friday, August 2, the SHFE aluminium benchmark price dipped by US$10 per tonne or 0.37 per cent to peg at US$2,643 per tonne. The most-traded SHFE 2409 aluminium contract opened at RMB 19,230 per tonne overnight, reaching a high of RMB 19,330 per tonne and a low of RMB 19,225 per tonne, and closed at RMB 19,225 per tonne, up RMB 50 per tonne, an increase of 0.26 per cent.
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