Aluminium gains on reports of Chinese smelter curbs

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LONDON — Aluminum prices were driven higher on Monday by supply concerns after reports that smelters in top producer China were curbing production.

Three-month aluminum on the London Metal Exchange (LME) advanced 1.7% to $2,428 a tonne in official open-outcry trading after slipping by 0.3% on Friday.

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Aluminum output in one of China’s major producing provinces, Yunnan, is set to decline after fresh cutbacks were ordered, analysts said.

“It looks like the market is finding some support from the pick up in aluminum prices with production being curbed further in Yunnan province,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

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“There are still plenty of supply concerns underpinning metals prices.”

An additional 415,000 tonnes of aluminum smelting capacity was ordered to be cut in Yunnan over the weekend, Citi said in a note. China’s aluminum output last year rose 4.5% from the previous year to a record high, boost by new capacity and a relaxation of power supply restrictions.

The most-traded aluminum contract on the Shanghai Futures Exchange rose 1.4% on Monday to 18,775 yuan a tonne.

A weaker dollar also supported metals prices, making commodities priced in the U.S. currency less expensive for buyers using other currencies.

LME aluminum prices have been weak recently, sliding by 9% since Jan. 26 after large gains in inventories. LME aluminum stocks have jumped by 56% over the past month.

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All LME prices were firmer on Monday as additional impetus was provided by a survey showing that home sales in 16 Chinese cities rose for a third consecutive week, with more support measures and the end of Beijing’s zero-COVID policy helping to stabilize demand.

LME copper was up 0.6% in official activity at $9,043 a tonne after touching its highest in more than two weeks while zinc rose 0.5% to $3,074.50.

Lead gained 1.5% to $2,095, nickel jumped 2.2% to $26,350 and tin was up 1.3% at $26,200.

For the top stories in metals and other news, click

($1 = 6.8591 yuan) (Reporting by Eric Onstad Additional reporting by Mai Nguyen in Hanoi Editing by David Goodman)

Article content

LONDON — Aluminum prices were driven higher on Monday by supply concerns after reports that smelters in top producer China were curbing production.

Three-month aluminum on the London Metal Exchange (LME) advanced 1.7% to $2,428 a tonne in official open-outcry trading after slipping by 0.3% on Friday.

Article content

Aluminum output in one of China’s major producing provinces, Yunnan, is set to decline after fresh cutbacks were ordered, analysts said.

“It looks like the market is finding some support from the pick up in aluminum prices with production being curbed further in Yunnan province,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Article content

“There are still plenty of supply concerns underpinning metals prices.”

An additional 415,000 tonnes of aluminum smelting capacity was ordered to be cut in Yunnan over the weekend, Citi said in a note. China’s aluminum output last year rose 4.5% from the previous year to a record high, boost by new capacity and a relaxation of power supply restrictions.

The most-traded aluminum contract on the Shanghai Futures Exchange rose 1.4% on Monday to 18,775 yuan a tonne.

A weaker dollar also supported metals prices, making commodities priced in the U.S. currency less expensive for buyers using other currencies.

LME aluminum prices have been weak recently, sliding by 9% since Jan. 26 after large gains in inventories. LME aluminum stocks have jumped by 56% over the past month.

Article content

All LME prices were firmer on Monday as additional impetus was provided by a survey showing that home sales in 16 Chinese cities rose for a third consecutive week, with more support measures and the end of Beijing’s zero-COVID policy helping to stabilize demand.

LME copper was up 0.6% in official activity at $9,043 a tonne after touching its highest in more than two weeks while zinc rose 0.5% to $3,074.50.

Lead gained 1.5% to $2,095, nickel jumped 2.2% to $26,350 and tin was up 1.3% at $26,200.

For the top stories in metals and other news, click

($1 = 6.8591 yuan) (Reporting by Eric Onstad Additional reporting by Mai Nguyen in Hanoi Editing by David Goodman)