Shanghai aluminium hits 13-year high on supply concerns
- Three-month aluminium on the London Metal Exchange hit its highest since July 30 at $2,635 a tonne
Shanghai aluminium prices hit their highest in 13 years on Tuesday, as output disruptions in top producer China raised supply concerns.
The most-traded September aluminium contract on the Shanghai Futures Exchange climbed as much as 1.6% to 20,575 yuan ($3,175.74) a tonne, its highest since August 2008.
Three-month aluminium on the London Metal Exchange hit its highest since July 30 at $2,635 a tonne.
LME aluminium may rise to $2,674 this week
China's state planner has stopped reviewing proposals for new high energy-consuming projects that has no support of the national government in Yunnan, Guangxi and Xinjiang, all aluminium producing areas, after they increased their energy consumption in January-June.
"The output of electrolytic aluminum (in China) continued to decline in July... The power curtailment policies in various regions continue to put pressure on aluminum supply," said Huatai Futures in a report.
However, there were signs of slight stockpiling in the traditionally slow season, Huatai added.
FUNDAMENTALS
LME copper rose 0.2% to $9,463 a tonne at 0549 GMT, and tin advanced 0.6% to $35,900 a tonne.
ShFE copper dipped 0.6% to 69,860 yuan a tonne, zinc climbed 1.3% to 22,810 yuan a tonne and tin jumped 2.6% to 243,780 yuan a tonne.
Record aluminium prices in the United States and Europe will be sustained by Russia's mining tax for some months, but attempts to push prices even higher are likely to face headwinds from traders cashing in their stocks, analysts said.
Average prices for aluminium raw material alumina in China were last assessed at 2,644 yuan per tonne, the highest since July 2019, as refineries reduced output due to power restrictions and lack of input material bauxite.
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