Aluminium jumps on supply worries after report of China smelter blast

  • 11/19/2021
  • 00:00
  • 3
  • 0
  • 0
news-picture

Aluminium prices jumped on Friday on supply disruption worry after a smelter in China reportedly stopped production after an explosion. An aluminium plant in China"s Yunnan province with annual capacity of 300,000 tonnes has stopped production after an explosion on Thursday evening, Shanghai Metals Market reported. The most-traded January aluminium contract on the Shanghai Futures Exchange rose as much as 3.2% to 19,180 yuan ($3,003.45) a tonne, while three-month aluminium on the London Metal Exchange advanced 2.1% to $2,670.50 a tonne by 0407 GMT. Aluminium has been one of the hardest hit sectors by the recent China power curbs due to the metal smelting process" high energy consumption. The electricity curbs in China have slashed around 7% of domestic aluminium annual capacity so far this year, according to estimates from consultancy Wood Mackenzie. read more The premium of LME cash aluminium over the three-month contract rose to $17 a tonne, the highest since Aug. 31, indicating tightening nearby supplies, as on-warrant inventories in LME warehouses fell to 587,900 tonnes, their lowest since December 2005. Inventories in China , , however, have risen slightly in recent weeks as the power shortage issues eased. FUNDAMENTALS * ShFE nickel climbed as much as 4.2% to 147,840 yuan a tonne, copper advanced 1.9% to 70,570 yuan a tonne and tin increased 1.8% to 289,790 yuan a tonne. * LME copper was up 1.7% to $9,605 a tonne, nickel gained 1.3% to $19,900 a tonne and zinc rose 1.4% to $3,204.50 a tonne. * For the top stories in metals and other news, click or MARKETS NEWS * Asian shares fell as disappointing earnings from Chinese e-commerce giant Alibaba heightened worries about Beijing"s broad regulatory crackdown and slowing growth in the world"s second-biggest economy. DATA/EVENTS (GMT) 0700 UK Retail Sales MM, YY Oct 0700 UK Retail Sales Ex-Fuel MM Oct ($1 = 6.3860 yuan)

مشاركة :