20 APRIL 2016<a href= http://www.reuters.com/article/global-metals-idUSL3N17M18R ' target='_blank'> Reuters </a>
Aluminium stalls on prospect of Chinese production restarts
Edited by : AL CIRCLE
1 min read
Aluminium on London Metal Exchange (LME) gained 1.1 per cent to reach $1,587, its highest since March 8.
But Chinese exports and oversupply are expected to weigh on prices over the coming weeks and months as recent gains entice Chinese smelters to restart aluminium output.
That prospect has seen aluminium prices in Shanghai stall at about 12,000 yuan a tonne in recent days.
"At these prices, we estimate less than 18 percent of Chinese capacity is facing real margin pressure," Citi said in a note. "We expect China to have an effective surplus of about 3 million tonnes this year, much of which we believe could be exported in the form of products."
But Chinese exports and oversupply are expected to weigh on prices over the coming weeks and months as recent gains entice Chinese smelters to restart aluminium output.
That prospect has seen aluminium prices in Shanghai stall at about 12,000 yuan a tonne in recent days.
"At these prices, we estimate less than 18 percent of Chinese capacity is facing real margin pressure," Citi said in a note. "We expect China to have an effective surplus of about 3 million tonnes this year, much of which we believe could be exported in the form of products."
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