Only over a night, LME aluminium cash bid price and LME aluminium official settlement price shot up by US$100.50 per tonne and US$100 per tonne to stand at US$2,504.50 per tonne and US$2,505 per tonne, respectively. According to various analyses, the prices rose through key resistance levels – 1) lower inventories, 2) a weaker dollar, and 3) expectations that the US Federal Reserve will announce a bigger rate cut.
With the latest cut, the LME aluminium benchmark price demonstrated a month-on-month increase of US$211.50 per tonne from US$2,293.50 per tonne.
On the same day, the 3-month bid price and 3-month offer price arrived at US$2,518 and US$2,518.50 per tonne, marking a never-before overnight growth rate of 4 per cent from the previous day. December-25 bid and December-25 offer price soared by US$93 per tonne and US$87 per tonne to clock at US$2,615 per tonne and US$2,620 per tonne, respectively.
LME aluminium opening stock further suffered a loss of 3,500 tonnes on September 16 to stand at 817,350 tonnes. Live Warrants and Cancelled Warrants closed at 350,225 tonnes and 467125 tonnes. While the former remained restrained, the latter decreased by US$3,500 per tonne.
LME aluminium 3-month Asian Reference Price skyrocketed by US$70.33 per tonne to stand at US$2,497.63 on Monday, September 16.
