LME benchmark aluminium price skids by US$47.50/t to US$2216/t; SHFE marks W-o-W drop of US$3/t

LME aluminium opened at US$2,267.5 per tonne Monday, with its low and high at US$2,233 per tonne and US$2,273.5 per tonne respectively before closing at US$2,240 per tonne, a drop of US$27.5 per tonne or 1.21 per cent.

Despite concerns about a global economic downturn, there is some positive news regarding hydropower generation in Yunnan, which could lead to a slight increase in local aluminium production by late June. While there may be a tiny disruption in the decline of aluminium inventories due to more shipments arriving, downstream demand is projected to remain low. As a result, aluminium prices are expected to remain stable in the short term.

On June 5, Monday, the LME aluminium cash bid price and the LME aluminium official settlement price halted at US$2,214 per tonne and US$2,216 per tonne, descending by US$49 per tonne or 2.16 per cent and US$47.50 per tonne or 2.1 per cent, respectively.

The 3-month bid price and the 3-month offer price both decreased by US$34.50 per tonne or 1.51 per cent, officially settling at US$2,254.50 per tonne and US$2,255 per tonne, respectively.

December 24 bid price and December 24 offer price shrank by US$36 per tonne or 1.47 per cent to stop at US$2,402 per tonne and US$2,407 per tonne, respectively. 

LME aluminium opening stock witnessed a slump of 1.04 per cent or 6,025 tonnes, officially closing at 585,050 tonnes from 579,025 tonnes on June 2.

Live warrants read 324,650 tonnes, with a heavy decline of 10,850 tonnes or 3.23 per cent. Cancelled warrants halted at 260,400 tonnes with a noticeable rise of 16,875 tonnes or 6.93 per cent.

The 3-month Asian Reference Price closed at US$2,243.70 per tonne, with a drop of US$51.06 per tonne or 2.22 per cent.

SHFE aluminium price

On June 6, today, SHFE aluminium price has dived by US$25 per tonne or 0.96 per cent, officially closing at US$2,572 per tonne. The SHFE aluminium price has shed US$3 per tonne or 0.12 per cent of a week on week scale from US$ 2,575 per tonne on May 30, Tuesday to US$2,572 per tonne, today.

Overnight, the most-traded SHFE 2307 aluminium contract opened at RMB 18,160 per tonne, with its low and high at RMB 18,070 per tonne and RMB 18,180 per tonne before closing at RMB 18,140 per tonne, down RMB 135 per tonne or 0.74 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.