LONDON (MarketWatch) – London Metal Exchange (LME) aluminum futures surged to a five-year high on Wednesday as China’s large producer, Chinalco, cut production in two months ahead of schedule and will soon lead to a decline in aluminum inventories.
London time on September 20 17:00 (Beijing time on September 21 00:00), three-month aluminum closed up 2.5 percent at $ 2,177 per ton, intraday hit since September 2012 up to 2,194.50 dollars.
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China’s environmental governance action will lead to supply shortages worried about the price of aluminum, aluminum this year, the London metal market, the best performing metal, the cumulative increase of 28%.
Nearly two months before the official start of the winter, China’s largest state-owned producer, Alcoa, has begun to cut production in Hebei province.
According to data released by the International Aluminum Association (IAI) on Wednesday, China’s aluminum production in August was 2.64 million tonnes, down from 268.6 million tonnes in July, the lowest since April 2016.
In the context of strong haze, China has ordered 28 steel and aluminum producers in the city to cut production in the winter months. It is reported that, according to the Ministry of Environmental Protection and the National Development and Reform Commission and other regulatory authorities issued instructions, 28 cities smelters must also be aluminum and alumina production capacity reduction of more than 30%.
“China is trying to cut production before winter,” said Bernard Dahdah, an analyst at Natixis.
LME warehouse aluminum stocks fell to the lowest since January 1.3 million tons, compared with Tuesday to reduce 2,725 tons.
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Three-month copper fell 0.2 percent to $ 6,527 a tonne, ending a modest three-day uptrend.
International Copper Research Group (ICSG) in the latest monthly report said that in June this year, the global refined copper market supply shortage of 70,000 tons in May for the shortage of 50,000 tons.
Three-month nickel closed up 2.2% at $ 11,380 a tonne.
Three-month lead rose 1.7% at $ 2,460 a tonne.
Three-month zinc rose 0.9% to $ 3,133 a tonne.
Three-month tin fell 0.1 percent at $ 20,625 a tonne.
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