China aluminium scrap prices rise; SHFE aluminium settles higher at 10,360 yuan per ton

Chinese aluminium scrap prices advanced on Scrap Register Price Index as on December 9, Wednesday, as expectation of output cuts in China prompted some investors to reverse bearish bets while lead hit a month peak as inventories hovered at multi-year lows.

According to the Scrap Register Price Index, the major Chinese aluminium scrap commodities like 6063 extrusion, aluminium scrap, aluminium can and EC wire (Al >99%) traded up on Wednesday.

However, the most active 1602 aluminium contract on the Shanghai Futures Exchange (SHFE) settled slightly up by 0.68% to 10,360 yuan per ton on Wednesday from the previous close of 10,290 yuan per ton.

6063 Extrusions witnessed a rise of CNY 100 per MT over the previous day. Aluminium Radiators and Transformers prices increased by CNY 100 per MT each. E.C Aluminium Wire prices jumped higher by CNY 150 per MT to touch CNY 10,400 per MT. Old Cast prices too appreciated by CNY 100 per MT. The prices of Aluminium Radiators and Old Sheet saw marginal rise of CNY 100 per MT each. UBC and Zorba 90% INF prices too increased by CNY 100 per MT over the previous day.

However, Benchmark aluminium on the LME closed up 0.9 percent at $1,490 a ton. As per a media report China's top aluminium smelters were supposed to meet on Thursday to discuss possible output cuts due to plunging metal prices. The outcome of what they discussed is yet to be announced.

Capping the gains, however, were persistent concerns about aluminium exports from China, the world's largest producer, which have helped push prices to a 6-1/2 year low of $1,432.50 last month.