Help Desk -
9717405332, 9599714297, 9810335381

Aluminium set for strong weekly gain on supply concern

Metal News - Published on Fri, 17 May 2019

Image Source: IHS Markit
Reuters reported that aluminium prices in London and Shanghai are set for solid weekly gains on Friday, as alumina refinery shutdowns in China raises production costs for the metal, but a gloomy global growth outlook put pressure on base metals prices. Benchmark aluminium is on track for its best week of gains since February 22, rising 2.4% on a weekly basis at 0425 GMT, while Shanghai aluminium is seen rising for the first time this week after two straight weeks of falls.

ANZ said in a note that “The aluminium market remains tight. We estimate it was in a deficit of around 1 million tonnes in 2018, with ongoing supply issues likely to deepen this deficit this year.”

It said that “Aluminium demand in China is showing signs of recovery. Key sectors such as housing, electricity grid investment and durable goods were all up sharply in recent months. Only the auto sector remains weak; however even the recent fall in growth has subsided.”

* ALUMINIUM: The most active aluminium contract on the Shanghai Futures Exchange fell 0.2%, easing from a seven-month high hit earlier in the session. London aluminium edged down 0.4% after hitting a two-week high in the previous session.

ALUMINA: Alumina prices in northern China SMM-ALM-NCHN have now exceeded 3,000 yuan a tonne as of Thursday and touched their highest since Dec. 10, latest data showed.

CHINA: Prior to the shutdowns, China’s alumina output rose 4.2% y/y to 6.28 million tonnes in April, according to data released on Thursday. The figure is the highest monthly total on records on the bureau’s website since June 2017.

HYDRO: A Brazilian federal court has lifted one of two production embargoes on Norsk Hydro’s Alunorte alumina refinery, the company said on Thursday, raising hopes that full production can soon resume.

OTHER METALS: All metals on the LME fell amid uncertainty for the global economic outlook. Benchmark copper was down 0.7% at USD 6,058 a tonne, nickel fell 0.6%, zinc lost 1% and lead edged 0.4% lower.

Source :

Posted By : Rabi Wangkhem on Fri, 17 May 2019
Related News from Metal segment