China aluminium smelters meet to address 'irrational' price spike
- Aluminium on the Shanghai Futures Exchange rose as much as 4.2% on Monday to 21,550 yuan ($3,332)
The China Nonferrous Metals Industry Association (CNIA) held a meeting of the country's top aluminium smelters on Monday to address what it described as an "irrational surge" in aluminium prices, which hit a 13-year high in Shanghai.
Aluminium on the Shanghai Futures Exchange rose as much as 4.2% on Monday to 21,550 yuan ($3,332), the highest since August 2008, as production curbs in key Chinese smelting regions - often aimed at easing the strain on the power grid - spark fears of tight supply.
The 10 companies that participated in the CNIA video meeting included state-run Aluminum Corp of China Ltd, or Chalco, and top private-sector producer China Hongqiao Group, according to a CNIA statement published by its research arm, Antaike.
Participants agreed there was "no obvious gap" between supply and demand in the third-quarter aluminium off-season and that they would strive to cope with rising costs by improving efficiency, said the statement, which added that the meeting was also aimed at preventing price speculation.
Copper claws higher on physical demand, but jittery on rates
"Companies will continue to ensure supply and stabilise market expectations," it added.
Shanghai aluminium is up more than 36% year-to-date even as China continues with a rare release of strategic metal reserves - one of a number of measures it is taking to try to tame high commodity prices and ease the pressure on manufacturers.
Participants agreed that keeping aluminium prices "within a reasonable range is conducive to the stability and long-term development of the industry," the CNIA said of Monday's meeting.
"We will ... take the lead in maintaining the order of commodity market prices and creating a good industry ecology," it added.
Comments are closed.