LONDON: Aluminium prices climbed on Friday as an explosion at a smelter in China fuelled fears about tighter supplies, while concerns about shortages and low inventories boosted copper prices.
Benchmark aluminium on the London Metal Exchange traded up 1% at $2,643 a tonne in official rings, having earlier touched a session high of $2,697.5. Copper climbed 1% to $9,540 a tonne.
“News of the explosion helped aluminium in a knee-jerk reaction,” an aluminium trader said, adding that higher aluminium prices would depend on whether the disruption is prolonged and exacerbates shortages.
“For copper the story is still about inventories.”
YUNNAN: An aluminium plant in China’s Yunnan province with annual capacity of 300,000 tonnes stopped production after an explosion on Thursday evening, Shanghai Metals Market reported.
A person answering the phone at Yunnan’s Wenshan city emergency management bureau confirmed to Reuters that an explosion took place at an aluminium factory on Thursday night, without naming the company nor providing any other details.
Power curbs in China have slashed around 7% of domestic aluminium annual capacity so far this year, according to estimates from consultancy Wood Mackenzie.
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