Aluminium futures in China rose for a fifth straight session on Tuesday, buoyed by falling inventories and production cuts amid soaring power prices in Europe.
The most-traded February aluminium contract on the Shanghai Futures Exchange was up 2.4% at 21,580 yuan ($3,386.80) a tonne. Prices earlier rose to 21,600 yuan, a peak since Oct. 26.
Data last week showed inventories in warehouses monitored by the Shanghai Futures Exchangewere at 314,859 tonnes, its lowest level since November 2021.
Stocks of aluminium in LME-registered warehouses were last at 911,500 tonnes, down more than 50% since hitting a 1.96 mln tonne high in March last year.
A surge in power and natural gas costs across Europe has led to output reductions at smelters, with an aluminium smelter in Dunkirk, France being the latest to announce an output cut.
Fundamentals
ShFE copper eased 0.1% to 69,670 yuan a tonne, while nickel gained 2.1% to 156,920 yuan, zinc was up 0.2% at 24,295 yuan, lead edged 0.2% higher to 15,220 yuan and tin rose 0.2% to 298,890 yuan.
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