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METALS-Aluminium at more than 10-year high as supply worries grow

reuters.com · 09/02/2021 00:03
METALS-Aluminium at more than 10-year high as supply worries grow

- Aluminium prices hit a more than 10-year high on Thursday on concerns over supply of the energy-intensive metal, which were stoked further as several power plants in India were on the verge of running out of coal.

Benchmark three-month aluminium on the London Metal Exchange CMAL3 was up 1.1% at $2,720 a tonne, as of 0334 GMT, after touching $2,732.50 earlier in the session, its highest since May 2011.

The most-traded October aluminium contract on the Shanghai Futures Exchange SAFcv1 climbed 1.1% to 21,400 yuan ($3,312.18) a tonne. It hit a 13-year peak of 21,550 yuan on Monday, as production curbs in key Chinese smelting regions sparked fears of tight supply.

India, the second-biggest producer of primary aluminium after China, urged utilities to import coal to boost domestic supply of the fuel as coal-fired generation surged after an easing of coronavirus-related curbs.

The inadequate coal supply in India has raised concerns about a potential disruption in local aluminium production.


FUNDAMENTALS

* Three-month LME copper CMCU3 rose 0.5% to $9,384 a tonne, while Shanghai's most-active October copper contract SCFcv1 fell 0.7% to 69,090 yuan a tonne.

* Top metals consumer China released another 150,000 tonnes of state metal inventories to the market on Wednesday, completing a third round of auctions so far this year as it aims to ease the pressure of high commodity prices on businesses.

* For the top stories in metals and other news, click TOP/MTL or MET/L


MARKETS NEWS

* Asian share markets were in a cautious mood on Thursday as concerns grew over the Chinese economy after a run of soft data, while the risk of a subpar U.S. payrolls report kept the dollar on the defensive. MKTS/GLOB


DATA/EVENTS (GMT)

0130 Australia Trade Balance G&S July

1230 US International Trade July

1230 US Initial Jobless Clm Weekly

1400 US Factory Orders MM July


PRICES
Three month LME copper CMCU3

Most active ShFE copper SCFcv1

Three month LME aluminium CMAL3

Most active ShFE aluminium SAFcv1

Three month LME zinc CMZN3

Most active ShFE zinc SZNcv1

Three month LME lead CMPB3

Most active ShFE lead SPBcv1

Three month LME nickel CMNI3

Most active ShFE nickel SNIcv1

Three month LME tin CMSN3
Most active ShFE tin SSNcv1

ARBS

LMESHFCUc3

LMESHFALc3

LMESHFZNc3

LMESHFPBc3

LMESHFNIc3


($1 = 6.4610 Chinese yuan)


(Reporting by Enrico Dela Cruz in Manila; Editing by Shounak Dasgupta)

((enrico.delacruz@tr.com))

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