01 APRIL 2016www.aluminiuminsider.com
Buoyant seasonal demand driving China aluminium prices up
Edited by : AL CIRCLE
2 min read
China’s aluminium futures rose to their highest level in half a year on Monday, March 28, thanks to an increase in seasonal demand, and lowered domestic output due to capacity cuts made late last year.
Stocks of aluminium ingots at major warehouses across China dropped from 937,000 metric tons last week to 870,000 metric tons this week. Jackie Wang, analyst at CRU Group in Beijing, says this is indicative of an uptick in demand.
“We do not expect to see a sharp increase in production through the second quarter because we haven’t seen any significant restarts among aluminium smelters up to now,” explained Wang.
Shanghai Futures Exchange’s most-traded May aluminium contract jumped to CN¥11,830 yuan (US$1,816) a metric ton on Monday, the highest it’s been since September 25. Wang predicted that it could go as high as CN¥12,000 over the next two weeks.
This week’s prices are building on a rise in prices for the metal in the previous ten days leading up to it. According to reporting by Platts, the average price of aluminium was CN¥11,306.2 per metric ton (US$1,742) between March 11 and 20, which was up 1.1 per cent from the average of the prior ten days of CN¥11,183.5 per metric ton.
Stocks of aluminium ingots at major warehouses across China dropped from 937,000 metric tons last week to 870,000 metric tons this week. Jackie Wang, analyst at CRU Group in Beijing, says this is indicative of an uptick in demand.
“We do not expect to see a sharp increase in production through the second quarter because we haven’t seen any significant restarts among aluminium smelters up to now,” explained Wang.
Shanghai Futures Exchange’s most-traded May aluminium contract jumped to CN¥11,830 yuan (US$1,816) a metric ton on Monday, the highest it’s been since September 25. Wang predicted that it could go as high as CN¥12,000 over the next two weeks.
This week’s prices are building on a rise in prices for the metal in the previous ten days leading up to it. According to reporting by Platts, the average price of aluminium was CN¥11,306.2 per metric ton (US$1,742) between March 11 and 20, which was up 1.1 per cent from the average of the prior ten days of CN¥11,183.5 per metric ton.
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