10 NOVEMBER 2014Shanghai Metal Market
Downward pressure looming in Chinese aluminum market
Edited by : AL CIRCLE
1 min read
Aluminum market proves strong amid the bearish commodity market, with LME aluminum hitting $2,078 per tonne in early week.
The rising momentum in LME aluminum market mainly comes from supply tightness, continuous declines in inventories, and rising backwardation, one local media reported today.
The falling SHFE/LME aluminum price ratio, however, suggests the lack of rising stream in China’s aluminum market, it said, adding that growing supply, weak consumption and costs support resulted in such conditions.
Inventory pressures from huge capacities, coupled with the end of peak-demand season, will put a downward pressure in domestic aluminum market, it added.
The rising momentum in LME aluminum market mainly comes from supply tightness, continuous declines in inventories, and rising backwardation, one local media reported today.
The falling SHFE/LME aluminum price ratio, however, suggests the lack of rising stream in China’s aluminum market, it said, adding that growing supply, weak consumption and costs support resulted in such conditions.
Inventory pressures from huge capacities, coupled with the end of peak-demand season, will put a downward pressure in domestic aluminum market, it added.
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