LME benchmark aluminium price further sheds US$20/t owing to US Dollar index rise; SHFE expands 3.7% Y-o-Y

If we consider the highest LME aluminium price recorded last year, which was US$2,636 per tonne on January 18, a massive drop of US$420.50 per tonne or 15.95 per cent can be witnessed. Meanwhile, if the lowest price of 2023, which was US$2,068.50 per tonne on August 21, is considered, an augmentation of US$147 per tonne or 7.11 per cent can be calculated. On a Year-on-Year scale, there has been a slump of US$54.50 per tonne or 2.4 per cent from US$2,270 per tonne marked on January 5, last year. 

On Thursday, January 4, the prices of base metals across all categories experienced a decline on the London Metal Exchange (LME). This was attributed to the market's ongoing response to the release of the December meeting minutes of the United States Federal Reserve on January 3. Furthermore, a stronger US dollar index had a negative impact on the entire base metals complex. As of the latest update, the US dollar index stood at 102.40, having reached its highest point since December 14 at 102.73 on Wednesday, indicating a strengthening trend.

The 3-month bid price and the 3-month offer price have both dived down by US$24 per tonne or 1.05 per cent to anchor at US$2,262 per tonne and US$2,263 per tonne, respectively.