Shanghai aluminium lingers near 9-1/2-year high on supply worries
HANOI, March 3 (Reuters) - Shanghai aluminium prices rose to a near 9-1/2-year high on Wednesday, buoyed by concerns of supply cuts in China, the world’s biggest user and producer of the metal.
The most-traded April aluminium contract on the Shanghai Futures Exchange ended 4.2% higher at 17,640 yuan ($2,729.09) a tonne, hovering near its highest level since August 2011 of 17,695 yuan a tonne it last hit on Feb. 26.
Three-month aluminium on the London Metal Exchange rose 1.1% to $2,235 a tonne by 0712 GMT. The contract jumped 3.9% on Tuesday.
China’s Inner Mongolia, a major aluminium producing region, will stop reviewing new projects in industries which consume large amounts of energy, including aluminium, as it attempts to meet energy efficiency targets.
“Aluminium supplies are already tight due to speculation that China will close the aluminium smelters that are due to not meeting environmental regulations,” a Singapore-based trader said.
“Every physical customer is asking around for aluminium warrants at the moment.”
* LME copper rose 0.4% to $9,208 a tonne, zinc advanced 0.2% to $2,857 while lead fell 0.6% to $2,068 a tonne.
* ShFE copper advanced 1.7% to 67,810 yuan a tonne, zinc climbed 1.9% to 21,705 yuan a tonne and tin increased 1% to 178,030 yuan a tonne.
* The LME cash aluminium was last at a discount of $3 per tonne over the three-month contract CMAL0-3, shrinking from a $14.50 discount in the previous session, indicating tightening in nearby supplies.
* China’s Tsingshan Holding Group has signed agreements to provide 100,000 tonnes nickel matte combined to Huayou Cobalt and CNGR Advanced Material.
* U.S. aluminium premium was last at $364 a tonne, easing from its highest since November 2019 of $365 a tonne hit on Monday, as the United States issued final anti-dumping duties on common alloy aluminium sheet from 18 countries.
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$1 = 6.4637 yuan Reporting by Mai Nguyen; Editing by Rashmi Aich