By Onome Amuge
Benchmark aluminium price on the London Metal Exchange climbed $6.5 per tonne over the week to settle at $2049 per tonne, as of Friday, December 18.
Both LME aluminium cash price and LME official settlement price inched higher last week during December 14-18 after swinging between $2042.50 and $ 2049 per tonne.
Starting the week on Monday, December 14, at $2042.50 per tonne, the prices slid to $2,022 per tonne on Tuesday, December 15.
On Wednesday, December 16, both LME aluminium cash price and LME official settlement price gained $7 to $2,029 per tonne but then declined by $1to $2028 per tonne on Thursday, December 17.
The metal however ended the week on a bullish note as prices settled $21 higher at US$ 2049 per tonne on Friday, December 18.
Meanwhile, 3-months bid price and 3-months offer price increased from $2054 on Monday, December 14, to $2059.50 per tonne on Friday, December 18.
On the run, the prices decreased on Tuesday, to $2038 per tonne, followed by a hike on Wednesday, to $2045.50 per tonne. On December 17, they slumped again to $2041 per tonne but rebounded on December 18 to $2059.50 per tonne.
December 21 bid price and December 21 offer price, however, stumbled from $ 2082.50 per tonne on Monday, December 14, to $2074 per tonne on Friday, December 18.
The LME aluminium opening stock opened the week with a jump from 1,329,600 tonnes to 1,357,650 tonnes and further hiked on Wednesday to 1,377,225 tonnes; however, gradually declined to 1,367025 tonnes on Friday. On the long run, the stock stood higher over the week by 9375 tonnes.
On the other hand, Benchmark aluminium price for the Shanghai Futures Exchange (SHFE) resumed the week on Monday, December 14, with a plunge from $2559 per tonne recorded on Friday December 11, the previous week to $2526 per tonne.
The drop extended on Tuesday to $2521 per tonne and fell deeper to $2501 per tonne on Wednesday, December 16. On December 17 and 18, the price hiked to $2512 per tonne and to $2554 per tonne, respectively.
Over the week, the SHFE price rose by $28 per tonne.
Aluminium, regarded as the most abundant metal on earth by mass and the third bountiful element after oxygen and silicon, is currently trading near its highest level in almost two years, pushed by rising demand for raw materials.
However, the metal is faced by concerns over a potential new U.S sanction on Rusal, one of the world’s leading producers, which according to analysts, is likely to limit global supply of aluminium.
Aluminum prices are trading near their highest levels in almost two years, fueled by soaring demand for raw materials and worries that potential new U.S. sanctions on Rusal, one of the world’s largest producers could limit global supplies of the metal.
According to Nitesh Shah, ETF Securities analyst, the major thing that has been a catalyst behind aluminium is the issues surrounding the sanctions against the Russia owned company which will make the market tighter.