More Producers Suspend Production, Aluminum Prices Edge Down-Shanghai Metals Market

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More Producers Suspend Production, Aluminum Prices Edge Down

SMM Insight 12:54:06PM Jan 28, 2013 Source:SMM

SHANGHAI, Jan. 28 (SMM) – Prices of base metals on the SHFE fell on January 24. SHFE 1305 copper contracts, the most active one, closed 0.24% lower at RMB 58,630/mt. An increasing number of producers in nonferrous metal industry have closed as Chinese New Year nears. 

Prices of A00 aluminum ingot slid further to near RMB 14,000/mt after retreating from RMB 15,000/mt on January 15. SHFE aluminum prices edged lower, sending spot aluminum prices down. Downstream producers showed little buying. Only middlemen were buying modest amounts at bottom prices. 

The latest SMM survey shows that orders for aluminum wire and cable declined sharply, with the average operating rate down to 64.29% in December as most power grid construction has been suspended at the year’s end.

Almost all wire and cable producers in Qinghai and Gansu provinces have halted production. Seasonal factors negatively affected power grid construction in northwest China, eroding demand for wire and cable. Power companies will not resume operation until March.    

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Positive HSBC China’s PMI Favorable for SMEs in Nonferrous Metal Industry 

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More Producers Suspend Production, Aluminum Prices Edge Down

SMM Insight 12:54:06PM Jan 28, 2013 Source:SMM

SHANGHAI, Jan. 28 (SMM) – Prices of base metals on the SHFE fell on January 24. SHFE 1305 copper contracts, the most active one, closed 0.24% lower at RMB 58,630/mt. An increasing number of producers in nonferrous metal industry have closed as Chinese New Year nears. 

Prices of A00 aluminum ingot slid further to near RMB 14,000/mt after retreating from RMB 15,000/mt on January 15. SHFE aluminum prices edged lower, sending spot aluminum prices down. Downstream producers showed little buying. Only middlemen were buying modest amounts at bottom prices. 

The latest SMM survey shows that orders for aluminum wire and cable declined sharply, with the average operating rate down to 64.29% in December as most power grid construction has been suspended at the year’s end.

Almost all wire and cable producers in Qinghai and Gansu provinces have halted production. Seasonal factors negatively affected power grid construction in northwest China, eroding demand for wire and cable. Power companies will not resume operation until March.    

Category

Title

Attention

Market

Upbeat PMI in Line with Expectations, Speculation in Base Metal Market Remains

 

★★★★

Industry

Positive HSBC China’s PMI Favorable for SMEs in Nonferrous Metal Industry 

★★★★

Copper

China’s Refined Copper Output Hits New High in December

★★★★

Aluminum

Alumina Output Up, But Aluminum Output Down YoY at BHP Billiton in 4Q 

 

★★★★

Lead

Ignition Lead-Acid Battery Remains Large Contributor to Lead Demand in 2012

 

★★★★