Worrying signs arise for battered aluminium prices, SMM says

Worrying signs have arisen for aluminum prices, which have retreated from this year’s high of 13,000 yuan/tonne to below 12,000 yuan/tonne, SMM says.

China’s aluminium output hit 2.68 million tonnes in May, the highest since November 2015, data from the National Bureau of Statistics (NBS) showed.

About 500,000-tpy idled aluminium capacity was brought back online in the first half of this year, SMM statistics showed. SMM estimates some another 400,000-500,000-tpy aluminium capacity to be restarted in June and July.

Aluminium stocks in China’s five major markets had fallen all the way from this year’s high seen in the week ending March 4. However, stocks reversed declines in the week ending June 13 by growing 19,000 tonnes from June 8. Although it is still early to say whether the change could be seen as a turning point, it is a worrying sign, SMM added.