HANOI: Shanghai aluminium futures rose on Tuesday, set for their ninth straight session of gains, on falling inventories in China and supply disruptions in upstream feed material.
The most-traded February aluminium contract on the Shanghai Futures Exchange was up 0.2% at 19,250 yuan ($2,694.23) per metric ton at 0620 GMT.
A fuel shortage in major bauxite producer Guinea heightened a bauxite tightness in China, which raised concerns of an alumina capacity cut that might ultimately translate to lower aluminium supply.
Lower inventories in China, the world’s top aluminium consumer, also helped raise prices. Aluminium inventories in China, assessed by SMM, dropped to 443,000 tons, the lowest since January 2017.
However, alumina prices retreated on Tuesday after hitting a record high in the previous session. The government of Guinea said supplies of fuel at gas stations are expected to improve significantly.
SHFE copper advanced 0.2% to 69,200 yuan, nickel was nearly flat at 129,640 yuan, zinc was up 0.5% at 21,430 yuan, lead rose 0.2% to 15,740 yuan, and tin edged up 0.1% at 208,400 yuan. The London Metal Exchange is closed for the Christmas holiday and will reopen on Wednesday.
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