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02 OCTOBER 2016 AL CIRCLE

China aluminium stock drops drastically; LME aluminium to find support at $1,630-1,700/tonne

EDITED BY : BEETHIKA BISWAS 2MINS READ

In a positive note, aluminium stocks at the five major markets in China namely Shanghai, Wuxi, Nanhai, Hangzhou and Gongyi fell drastically this past one week, an SMM report says.

The table below shows the drop in stocks in the mentioned markets.

NewsBased on this trend, SMM forecast that LME aluminium will gain more in the coming week of October.  SHFE aluminium is also expected to gain after the Chinese National Day holidays from 1st to 7th October.

News

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LME aluminium is expected to move within a range of $1,630-1,700/tonne. Falling aluminium stocks in China and rising production costs is expected to drive SHFE 1612 aluminium up to 12,300-12,580 yuan/tonne after the holidays.

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Driven by raised aluminium prices, spot premiums in east China market are expected to remain high at 400-600 yuan/tonne over SHFE 1610 aluminium.

Meanwhile, On September 29 China Aluminium International Trading Co. (Chalco Trading) hiked aluminium prices it offered in major markets today after cut in previous day.

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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