LME aluminium price nosedives over extended weekend by US$88.5/t; SHFE price declines to US$2,670/t

LME aluminium opened at US$2,475 per tonne on Tuesday and closed at US$2,384 per tonne, down $106 per tonne or 4.26 per cent.

On Tuesday, August 30, both LME aluminium cash bid price and LME aluminium official settlement price plummeted by US$87 per tonne or 3.48 per cent and US$88.5 per tonne or 3.54 per cent, to settle at US$2,406 per tonne and US$2,406.50 per tonne, after a long weekend.

China, the largest user of primary aluminium raw materials worldwide, had already expressed concern about the likelihood of a global recession and economic stagnation and the prospect of reduced market size. As a result, the industry's purchasing power decreased significantly.

On the same day, 3-month bid price and 3-month offer price dropped by US$80 per tonne or 3.21 per cent and US$80.5 per tonne or 3.23 per cent to halt at US$2,404.50 per tonne and US$2,405 per tonne.

December 23 bid price and December 23 offer price declined by US$73 per tonne to record at US$2,452 per tonne and US$2,457 per tonne.

LME aluminium opening stock closed at 280475 tonnes. Live warrants and Cancelled warrants stood at 189250 tonnes and 91225 tonnes.

LME aluminium 3-month Asian Reference Price went up by US$4.52 per tonne or 0.18 per cent to stop at US$2,437.51 per tonne.

SHFE aluminium price 

On Wednesday, August 31, the benchmark aluminium price for SHFE slumped by US$24 per tonne or 0.89 per cent to reside at US$2,670 per tonne.

The most-traded SHFE 2210 aluminium closed down 3.14 per cent or RMB 595 per tonne to RMB 18,360 per tonne, with open interest down 3,325 lots to 168,330 lots.

The most-traded SHFE 2210 aluminium contract opened at RMB 18,245 per tonne overnight and rose to RMB 18,380 per tonne before closing at RMB 18,280 per tonne, down RMB 80 per tonne or 0.44 per cent.