07 AUGUST 2015AlCircle.com
LME Aluminium hits six years low on supply concern
Edited by : AL CIRCLE
1 min read
Global glut caused benchmark aluminium to crash on London Metal Exchange hitting a six years low at $1,576 a tonne. The metal widely used across packaging and transport sectors recouped some losses closing at $1,592.50, down 0.2 per cent.
Primary aluminium exports from China surged 66 per cent in the first half of the year from the same period last year to reach 20,412 tonnes. However, what is more worrisome is the export of semi-fabricated aluminium products which has jumped a significant 44 per cent to reach 2.22 million tonnes.
Vivienne Lloyd, analyst at Macquarie, expressed concern over China’s releasing of its aluminium surplus. He said, "It needs to fall towards $US1,500 to convince people smelter closures are necessary."
Presently, aluminium stocks in LME approved warehouses stand at around 3.4 million tonnes. Besides, there are stocks that are held off exchange and by the producers as well.
Norsk Hydro, one of the world's biggest aluminium producers, estimated global inventories at about 14 million tonnes.
Aluminium saw 1,425,000 tonnes of shorts added last week, increasing the speculative short by 21 per cent of open interest. This is the biggest speculative short since mid-January, observed industry analysts.
Primary aluminium exports from China surged 66 per cent in the first half of the year from the same period last year to reach 20,412 tonnes. However, what is more worrisome is the export of semi-fabricated aluminium products which has jumped a significant 44 per cent to reach 2.22 million tonnes.
Vivienne Lloyd, analyst at Macquarie, expressed concern over China’s releasing of its aluminium surplus. He said, "It needs to fall towards $US1,500 to convince people smelter closures are necessary."
Presently, aluminium stocks in LME approved warehouses stand at around 3.4 million tonnes. Besides, there are stocks that are held off exchange and by the producers as well.
Norsk Hydro, one of the world's biggest aluminium producers, estimated global inventories at about 14 million tonnes.
Aluminium saw 1,425,000 tonnes of shorts added last week, increasing the speculative short by 21 per cent of open interest. This is the biggest speculative short since mid-January, observed industry analysts.
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