Aluminium rises on supply concerns, copper recoups losses
- The winter restrictions on refineries "fuelled the bullish vibe in the Chinese aluminium market", commodity strategists at ING said in a note.
Aluminium prices rose on Thursday, underpinned by concerns over supplies as winter restrictions to fight air pollution have begun to hit refining operations in top consumer China, while copper recouped early losses.
Three-month aluminium on the London Metal Exchange rose 0.4% to $2,043 a tonne by 0745 GMT, while the Shanghai benchmark ended daytime trade up 2.2% at 16,335 yuan ($2,494.77) a tonne.
The winter restrictions on refineries "fuelled the bullish vibe in the Chinese aluminium market", commodity strategists at ING said in a note.
"It remains to be seen how many further restrictions will be required should air pollution worsen," they said, citing smog warnings issued by some provinces, while also highlighting currently robust Chinese demand for the metal.
Copper recouped early losses though gains were muted as investors awaited progress regarding stalled US stimulus talks. London copper rose 0.1% to $7,732 a tonne, while Shanghai copper climbed 0.6% to 57,450 yuan a tonne.