OfBusiness Aluminium Dailies

9th June’23

Price

• The London Metal Exchange’s three-month futures market shows fluctuating aluminium prices, ranging between $2,220/mt and $2,280/mt.
• SHFE aluminium futures prices in China increased by 80-90 yuan/mt week-on-week.
• LME aluminium price plunged by $44/mt to $2,172/mt.
• The most-traded SHFE 2307 aluminium contract closed at 18,070 yuan/mt.
• Imported aluminium scrap prices in India have experienced significant fluctuations, with certain grades witnessing an uptick and others witnessing a fall compared to the previous week.
• China’s A00 aluminium ingot price soared 100 yuan/mt, reaching 18,380 yuan/mt.

Demand and Supply

• The supply and demand of primary aluminum in China are currently in balance.
• The increase in aluminum demand will be met by recycled aluminum, and it is expected that the gradual increase in the output of recycled aluminum will not have a major impact on aluminum prices.
• There is currently a shortage of aluminium scrap in the domestic market, resulting in low to medium trade activities.

News

• Uncertain market conditions make it challenging to predict the direction of imported aluminium prices.
• Buyers have paused procurement, while the US offers favorable proposals for aluminum, catering to current market demand.
• Recent deals include the trade of aluminum talk grade, chrome wheels, extrusion 6063, copper birch cliff, and Taint tabor.
• Limited responsiveness of market participants may lead to minor adjustments in accordance with current market expectations.
• Sustainability in the global aluminium industry is a topic of concern.
• The price of carbon anodes has gradually declined in the first half of the year.

OFB’s Opinion

• The limited number of players in the market could lead to slight adjustments to match current trends, potentially affecting the price of imported aluminium. The fluctuation in the London Metal Exchange creates differing viewpoints on the future cost of aluminium. The unpredictable market conditions make it difficult for market participants to accurately forecast the direction of imported aluminium prices. Additionally, the sustainability of the global aluminium industry is a crucial factor that could influence the future price trends of this commodity.