
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.
Responses







