Aluminium prices stumble on LME, SHFE

Onome Amuge

Aluminium price on the London Metal Exchange (LME) suffered a 1.11 per cent decline to settle at $1,822 per tonne on Monday hitting its lowest in more than two weeks.

LME aluminium cash (bid) price and LME official settlement price shed $6.5 per tonne from $1,829 per tonne to $1,822.50 per tonne.

Three-months bid price and 3-months offer price closed at $1,837.50 per tonne, a decline of $5 per tonne from $1,842.50 per tonne on Friday, October 23.

The bid and offer price for Dec 21 decreased from $1,895.50 per tonne to $1,890.50 per tonne.

The LME aluminium opening stock hovered at 1,473,900 tonnes. Live Warrants stood at 1,216,650 tonnes, while Cancelled Warrants stood at 257,250 tonnes.

Investors of the commodity expect a likely fluctuation between $1,810 and $1,850 per tonne on Tuesday.

Guillaume De Goys, Alvance Aluminium Group chief operating officer forecasts an active spot market in 2021. According to him, the inventory changes, supply delivery speed, and consumption growth are the major concerns in the fourth quarter as some countries battle resurging COVID-19 cases while the U.S stimulus uncertainty continues to generate anxieties among investors.

Benchmark aluminium price on the Shanghai Futures Exchange (SHFE) decreased from $2,205 per tonne to $2,200 per tonne on Tuesday, October 27.

A00 aluminium ingot price edged lower by $9 per tonne on Tuesday morning. The price now stands at $2,219 per tonne but is expected to range at $2216 to $2223 per tonne at the close of the day.