Shanghai aluminium prices jumped 3% on Monday to hit a 3-1/2-month high, following a week-long Lunar New Year holiday, with the market bolstered by supply concerns and as inventories in London touched their lowest levels since 2007.
The most-traded March aluminium contract on the Shanghai Futures Exchange was up 2.8% at 22,245 yuan ($3,497.48) a tonne, as of 0325 GMT. Earlier in the session, the contract hit 22,305 yuan, a peak since Oct. 22 last year.
Three-month aluminium on the London Metal Exchange gained 1.6% to $3,121.5 a tonne, having earlier hit a peak since Oct. 19.
LME aluminium could retrace to $2,967 this week
LME warehouse inventories were at 775,475 tonnes, their lowest levels since February 2007.
The intensifying tensions over Ukraine has also raised concerns over exports from major aluminium producer Russia, while the market is already reeling under smelter closures in China and Europe amid soaring power prices.
Fundamentals
LME copper eased 0.2% to $9,824 a tonne, nickel was up 1.3% at $23,270, lead rose 0.9% to $2,207.5, zinc dipped 0.1% to $3,609 and tin was down 0.1% at $42,990.
ShFE copper rose 0.4% to 70,750 yuan a tonne, nickel climbed 5% to 173,510 yuan, zinc fell 1% to 25,035 yuan, lead wad down 2.7% at 14,875 yuan and tin gained 3% to 334,310 yuan.
Authorities in aluminium hub of Baise city in Guangxi province in southwestern China enforced curbs that are among the toughest in the nation's tool-box to fight rising local COVID-19 infections.
MMG Ltd said on Monday that production at its Las Bambas copper mine in Peru may stop by Feb. 20 after a local community blocked again a road used by the miner, prompting the company to curtail operations.
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