Prebaked anode production in China gets affected by calcined coke shortage, environmental checks hit aluminium consumption

On Tuesday’s night trading, SHFE base metals mostly finished lower, including aluminium and today SHFE base metals are expected to hover at highs. SHFE 1711 aluminium will move within RMB 16,200-16,550/t today, with resistance at the 5-day and 10-day moving averages.  

SMM reports shortage of calcined coke in China, the raw material for making prebaked anode. Despite meeting all environmental protections standards, one prebaked anode producer in Shanxi is suffering from calcined coke shortages and running at 75% of its capacity.

The fall in production of prebaked anode may trigger supply shortfall and which may lift the prices of prebaked anode in the near term.

Henan Shenhuo Group, an integrated commodity producer, which, together with its subsidiaries, produces primary aluminium as well as aluminium products and prebaked anode, announced on August 29 that it would sell aluminium capacity swap quota at its headquarters. The total quota amounts to 60,000 tonnes of idled aluminium capacity.  

As updated by SMM, on August 29, live aluminium warrants on the SHFE stands at 431,173 tonne (+6,521) and

SMM also observes that aluminium consumption is hit by environmental inspections in Zhejiang. A number of small and medium aluminium downstream producers in Zhejiang and Hebei have shut down for environmental check.