Aluminium Price Drops due to Market Fluctuations and Economic Factors

LME and SHFE Prices Indicate Market Movements

SHFE Benchmark Price Decline

On Tuesday, August 13, the Shanghai Futures Exchange (SHFE) aluminium benchmark price dropped significantly by US$13 per tonne or 0.48%, settling at US$2653 per tonne. This decline reflects the current market trend and economic factors influencing the aluminium industry.

LME Aluminium Price Movements

The London Metal Exchange (LME) aluminium price opened at US$2547 per tonne in the previous trading day, reaching a high of US$2552 per tonne and a low of US$2518 per tonne. This shows the volatility in the aluminium market.

In the subsequent trading day, LME aluminium opened at US$2586 per tonne, with a low of US$2582 per tonne and a high of US$2623 per tonne. These fluctuations indicate market uncertainties and the impact of supply and demand dynamics.

Aluminium Price Decline Since 2024

According to data from contracts for difference (CFDs) that track the aluminium market, the price has decreased by US$75 per tonne or 3.15% since the beginning of 2024. This indicates a downward trend in aluminium prices.

Factors Influencing Aluminium Price Movements

The recent decline in aluminium prices can be attributed to several factors, including:

• Economic Slowdown: The global economic slowdown has reduced demand for industrial metals, including aluminium.
• High Inventory Levels: Aluminium inventories have remained high, putting pressure on prices due to ample supplies.
• Currency Fluctuations: The strength of the US dollar has made aluminium imports more expensive in some regions.

Conclusion

The aluminium market is experiencing downward price movements influenced by a combination of economic factors and market dynamics. The decline in SHFE and LME aluminium prices, as well as the overall decrease since 2024, reflects these market influences. The future direction of aluminium prices will depend on the evolution of economic conditions, supply-demand dynamics, and the global macroeconomic outlook.