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Global aluminium prices to stay firm as China closes plants

Metal News - Published on Wed, 29 Nov 2017

Image Source: Business standards
Business standard reported that the closure of excess aluminium smelter capacities and a pick up in demand for the metal in the European markets would support higher prices in the rest of the current financial year. Aluminium prices on the London Metal Exchange are ruling at multi-year highs of USD 2100 per tonne. An industry outlook report by Care Ratings has predicted average aluminium prices to hover in the range of USD 1900-2100 in the remainder of FY18.

An analyst said that "The crackdown on old, polluting smelters by the China government will see four million tonnes (around 10 per cent) of aluminium capacity going offline this winter. The cut down in production will buoy demand and support prices for aluminium in FY18."

China is the largest producer of primary aluminium with a share of 54 % in the global market.

Aluminium has continued its bull run with global prices rising by 23 % to USD 1961 per tonne in April-September compared with USD 1596 per tonne in the corresponding period of FY17. Environment and supply-side restrictions in China coupled with higher input costs and strong industrial activities supported LME prices.

India's aluminium production in this period moved up 3.5 % from 0.85 million tonnes to 0.88 million tonnes. The production increased due to improvement in operational efficiencies of the manufacturing units.

Source :

Posted By : Rabi Wangkhem on Wed, 29 Nov 2017
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