Shanghai aluminum prices hit a more than
two-month high on Thursday, driven by higher power prices and
rising supply concerns.
The most-traded February aluminum contract on the Shanghai
Futures Exchange closed 2% higher at 20,685 yuan a
tonne. Prices earlier hit the highest level since Oct. 27 of
Three-month aluminum on the London Metal Exchange
was down 0.5% at $2,906.5 a tonne by 0710 GMT, but it was
trading closer to a more than two-month high touched on
Aluminum is seeing a follow-through move from higher coal
prices, a Singapore-based trader said, adding, prices are
resilient due to fundamental support from supply deficit and
higher energy prices.
Chinese thermal coal futures was down 0.6% at 697.2
yuan a tonne, after rising about 5.5% earlier this week on
supply disruption fears following an export ban by Indonesia.
Most aluminum production in China uses electricity generated by
coal-fired power plants.
A surge in power and natural gas costs across Europe has
also led to output reductions at smelters in the region.
LME inventories of aluminum
926,800 tonnes, down more than 50% since March 2021 high of 1.96
* LME copper fell 1% to $9,604 a tonne, nickel
slipped 1.4% to $20,350, lead eased 0.2% to
$2.284, zinc was 1.1% lower at $3,548 and tin
was 0.3% lower at $39,180.
* Industrial metals came under pressure as the dollar firmed
after minutes from the U.S. Federal Reserve’s meeting signaled
a sooner-than-expected interest rates hike.
* ShFE copper fell 1% to 69,490 yuan a tonne,
nickel slipped 2% to 149,930 yuan, lead fell
1.4% to 15,060 yuan and tin was up 0.1% at 295,350
* Australian diversified miner South32 Ltd said it
would spend about $70 million to restart the Alumar aluminum
smelter in Brazil with its joint venture partner Alcoa Corp
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($1 = 6.3715 Chinese yuan)
(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry
Jacob-Phillips and Rashmi Aich)