Shanghai aluminum hits 13-year high due to fear of sourcing from China
September 8 (Reuters) – Aluminum prices in Shanghai hit their highest level in more than 13 years on Wednesday amid concerns over supplies to major Chinese consumers due to production restrictions and logistical constraints.
The most traded October aluminum contract on the Shanghai Futures Exchange reached 22,075 yuan ($ 3,416.18) per tonne, its highest level since July 2008, before closing at 21,935 yuan per tonne, again. up 0.9%.
Three-month aluminum on the London Metal Exchange climbed 1.5% to $ 2,798 per tonne, an unprecedented level since May 2011. The contract has climbed 41% so far this year, the second best interprets among the base metals LME after tin.
Consulting firm Aladdiny said China’s Guangxi Aluminum and Alumina Center is moving forward with measures announced last week requiring smelters to keep September production at a maximum of 80 percent of monthly levels. means in the first half of 2021 and that the alumina refineries remain at less than 50%.
Average spot prices of alumina in China
Meanwhile, backlogs of import shipments ahead of the Oct 1-7 holiday in China added to tight supply, with aluminum stocks in ShFE warehouses.
“Everyone is trying to get the first ship to avoid conflicting with arriving just before or during the National Day break, resulting in unnecessary rental and delivery delays,” said one trader based in Singapore.
“By the end of this week, I think the wave of (shipping) activity will end,” the trader said.
Aluminum prices have been supported for months by production restrictions in China, while the latest price hike has been spurred by political unrest in Guinea, although no immediate impact has been reported.
Guinea is China’s largest supplier of bauxite, an ore used to produce aluminum.
* LME copper fell 0.6% to $ 9,302 per tonne at 07:21 GMT, nickel climbed 1.3% to $ 19,765 per tonne, nickel ShFE rose 1.4% to 148,170 yuan per ton, while copper lost 0.5% to 68,680 yuan per ton.
* Global copper smelting activity was subdued in August, with factories mainly extending maintenance shutdowns, while flooding and power restrictions also had an impact, monitoring data from the company showed on Tuesday. satellite.
* For the best articles on metals and other news, click on or ($ 1 = 6.4619 yuan) (Reporting by Mai Nguyen in Hanoi and Tom Daly; Editing by Sherry Jacob-Phillips and Rashmi Aich)