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Shanghai aluminium slips after Malaysia lifts bauxite ban

Metal News - Published on Wed, 20 Feb 2019

Image Source: The Edge Markets
The Star reported that Shanghai aluminium prices fell after Malaysia said it would not extend a moratorium on mining bauxite when it expires on March 31, potentially reducing costs in the aluminium supply chain for top producer China. Bauxite is a rock refined to make alumina, which is then used to make aluminium metal. Chinese aluminium prices have been struggling to move away from two-year lows amid weak domestic demand and plentiful supply.

Ms Helen Lau, an analyst at Argonaut Securities, said in a note that "Not only is there a lack of fundamental support for the aluminium market, the cost support from bauxite may start to fade adding that in 2015, before the moratorium, Malaysia accounted for over 40 percent of China's total imports.”

Australian bauxite prices spiked to a near three-year high in January but have since eased.

Ms Lau added that "Recently the increased exports from Guinea and ... Australia have gradually taken the market share away from Malaysia. That said, Malaysia may still be a potential threat... due to its proximity to China.”

SHFE ALUMINIUM: The most traded aluminium contract on the Shanghai Futures Exchange slipped 0.3 percent to 13,405 yuan (USD 1,978.89) a tonne by the end of the morning. Three-month aluminium on the London Metal Exchange was up 0.1 percent at USD 1,858 a tonne.

ALUMINIUM: Mining giant Glencore has bought 200,000 tonnes of aluminium on the LME and will take delivery of the metal from warehouses owned by ISTIM UK in Port Klang, Malaysia, five sources familiar with the matter said.

RUSAL: Russia's Rusal is in talks to resume reinsuring its risks with Western companies after Washington lifted sanctions on it, officials with Russian National Reinsurance Co.

Source :

Posted By : Rabi Wangkhem on Wed, 20 Feb 2019
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