LME benchmark aluminium price sheds US$3/t; SHFE aluminium gets 0.31% hike amidst higher US interest rates

LME aluminium opened at US$2,208 per tonne on Wednesday, with its high and low at US$2,233 per tonne and US$2,208 per tonne, respectively, before closing at US$2,213 per tonne, up US$7.5 per tonne or 0.34 per cent.   

Bank of Canada unexpectedly raised interest rates, anticipating US Fed's rate hike in June. Hydropower generation in Yunnan is improving, predicting a small amount of aluminium capacity to resume by late June. Almost 200,000 tonnes of aluminium capacity will be released through Guizhou and Sichuan. Though it is not the season for downstream consumption, aluminium ingot inventories are continuously decreasing. Short-term aluminium prices are expected to remain range bound.

On June 7, Wednesday, the LME aluminium cash bid price and the LME aluminium official settlement price closed at US$2,168 per tonne and US$2,169 per tonne, falling US$3 per tonne or 0.14 per cent each.

The 3-month bid price shrank by US$5.50 per tonne or 0.25 per cent and the 3-month offer price dipped by US$4 per tonne or 0.18 per cent, officially settling down at US$2,213 per tonne and US$2,215 per tonne, respectively.

December 24 bid price and December 24 offer price shed US$7 per tonne or 0.29 per cent each to pause at US$2,373 per tonne and US$2,378 per tonne, respectively. 

LME aluminium opening stock faced 0.004 per cent or 25 tonnes decline, officially closing at 589,450 tonnes from 589,475 tonnes on June 6, the previous day.

Live warrants read 322,225 tonnes, with a rise of 350 tonnes or 0.11 per cent. Cancelled warrants halted at 267,225 tonnes with 375 tonnes or 0.14 per cent drop.

The 3-month Asian Reference Price closed at US$2,219.27 per tonne, with a slight loss of US$15.42 per tonne or 0.69 per cent.

SHFE aluminium price

On June 8, today, SHFE aluminium price has gained US$8 per tonne or 0.31 per cent, officially closing at US$2,590 per tonne.

The most-traded SHFE 2307 aluminium contract opened at RMB 18,130 per tonne overnight, with its low and high at RMB 18,080 per tonne and RMB 18,190 per tonne before closing at RMB 18,175 per tonne, up RMB 70 per tonne or 0.39 per cent.

SHFE 2307 aluminium added RMB 595 per tonne or 3.38 per cent to RMB 18,185 per tonne. The open interest fell 11,785 lots to 256,640 lots.