The London Metal Exchange (LME) aluminium price on April 13 saw the highest price in the last four years. The surge came after the US military said it would be imposing a blockade of the Strait of Hormuz, which is deemed to be the key port for shipping out metals from the Middle East. Given that the region provided 9 per cent of the global aluminium supplies, due to the rising tension, key industry players are worried about delayed shipments.
Both the cash bid and offer on April 13 rose by USD 139.5 per tonne or 4 per cent, showing a great leap from the previous day’s close, where the bid shifted from USD 3,525.5 per tonne to USD 3,665 per tonne and the offer from USD 3,526 per tonne to USD 3,665.5 per tonne.
A similar trend was seen in the LME 3-month bid and offer, where the bid jumped from USD 3,482.5 per tonne to USD 3,570 per tonne, showing a difference of USD 87.5 per tonne or 2.5 per cent. At the same time, the LME 3-month offer plummeted from USD 3,483 per tonne to USD 3,571 per tonne, owing to a change of USD 88 per tonne or 2.52 per cent.
However, on the other hand, the LME longer dated contracts saw a decline from the previous day’s close and both the December 27 bid and offer changed by USD 45 per tonne or 1.5 per cent. In this, the bid shifted from USD 3,028 per tonne to USD 2,983 per tonne and the offer from USD 3,033 per tonne to USD 2,988 per tonne, respectively.