alu.com
SHFE aluminum prices hit 15 month high
Edited by : AL CIRCLE
1 min read
Antaike hac reported that Henan province has cut power supply to smelters in Louyang city, though it didn’t disclose details. Henan province accounts for almost a quarter of Chinese output and 43% of the 4.3 million tonne of that output purchases its power. Chinese aluminum semis demand has been strong enough to absorb current smelter production and erode SHFE stocks.
The build out of affordable housing is also boosting construction demand. So any drop in smelter output due to power cuts would tighten the market. SHFE 6 month time spreads reflect this having tightened to trade in USD 70 per tonne backwardation and SHFE prices are trading at 15 month high. This may also be why there is market chatter about the Chinese State Reserve Bureau possibly releasing some of the 590 Kilo tonne of aluminum stocks it bought in 2009.
The build out of affordable housing is also boosting construction demand. So any drop in smelter output due to power cuts would tighten the market. SHFE 6 month time spreads reflect this having tightened to trade in USD 70 per tonne backwardation and SHFE prices are trading at 15 month high. This may also be why there is market chatter about the Chinese State Reserve Bureau possibly releasing some of the 590 Kilo tonne of aluminum stocks it bought in 2009.
Previous article
China Aluminum Fluoride Exportation Increases by 37.1% in June
Next articleChina aluminum prices up by 4pct due to steady demand and speculation
Grow with
AL Circle
