08 SEPTEMBER 2011CommodityOnline
LME prices not much boost,SHFE Aluminium gain
Edited by : AL CIRCLE
1 min read
LME Aluminium prices haven't received as much of a boost, SHFE Aluminium prices have gained today as the potential impact on Chinese aluminium smelter output from power curbs across China lent some strength. Chinese aluminium smelter production cuts have become more intense with smelters in Guizhou province the latest to suffer.
Power supply to smelters has reportedly been unstable since last week. Brook Hunt data show Guizhou accounts for 5% of Chinese production and Reuters has reported that it could be down by 10-20% m/m in September. The power shortages come from a combination of higher residential demand due to warm weather, while in Guangxi province droughts have reduced hydroelectricity power supply cutting Aluminium production by 200Kt.
Power supply to smelters has reportedly been unstable since last week. Brook Hunt data show Guizhou accounts for 5% of Chinese production and Reuters has reported that it could be down by 10-20% m/m in September. The power shortages come from a combination of higher residential demand due to warm weather, while in Guangxi province droughts have reduced hydroelectricity power supply cutting Aluminium production by 200Kt.
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