LME benchmark price stoops to US$2082.5/t amidst weaker consumption; SHFE aluminium marginally spikes by US$12/t

LME aluminium opened at US$2139 per tonne yesterday, with its high and low at US$2141 per tonne and US$2116 per tonne respectively before closing at US$2124 per tonne, down 0.47 per cent.

On December 11, the LME aluminium live price chart experienced a downward flow in aluminium prices, with the LME aluminium cash bid price and the LME aluminium official price discarding US$28 per tonne or 1.33 per cent and US$28.50 per tonne or 1.35 per cent to officially close at US$2,082 per tonne and US$2,082.50 per tonne.
Due to weak consumption recovery, inventories are beginning to accumulate at some places causing the aluminium price to fall. The market is beginning to anticipate a potential interest rate cut by the Federal Reserve next year. Although favourable policies are expected to be released in China at the end of the year, it will take time for these to have an impact on the manufacturing industry and other sectors.
Regarding the supply side, there are no expected changes in the short term. The market is primarily focused on the resilience of consumer demand during the off-season. Aluminium prices may be weak, but they are expected to find support from falling stocks.
London Metal Exchange graph displayed that the 3-month bid price and the 3-month offer price descended by US$23 per tonne or 1.07 per cent and US$23.50 tonne or 1.09 per cent, halting at US$2,126.50 per tonne and US$2,127 per tonne, respectively.
The December 24 bid price and the December 24 offer price dipped by US$23 per tonne or 1.01 per cent, stopping at US$2,247 per tonne and US$2,252 per tonne.
LME aluminium opening stock shed 850 tonnes or 0.19 per cent, officially resting at 452,375 tonnes. Live warrants stood at 207,875 tonnes, negating 3,150 tonnes or 1.49 per cent. Cancelled warrants halted at 244,500 tonnes, increasing by 2,300 tonnes or 0.95 per cent.
LME aluminium 3-month Asian Reference Price pegged at US$2,134.13 per tonne, down US$22.71 per tonne or 1.05 per cent.
SHFE aluminium price
On December 12, today, the Shanghai Futures Exchange (SHFE) aluminium price chart registered an ascend of US$12 per tonne or 0.47 per cent, with the official SHFE price settling at US$2,577 per tonne.
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.
Overnight, the most-traded SHFE 2401 aluminium contract opened at RMB 18360 per tonne, with high and low at RMB 18405 per tonne and RMB 18340 per tonne before closing at RMB 18365 per tonne, down RMB 15 per tonne or 0.08 per cent.