Restricted supply to keep Aluminum prices elevated in Q3 2014: FastMarkets

Aluminium Ingot January Production Analysis & February Forecast

According to SMM's research findings, Yunnan Province is currently experiencing a dry season, with hydropower contribution remaining at a relatively low level. Enterprises have no immediate plans for production resumption and await clearer policy guidance from the power sector.

The implementation of Indonesia's ban on bauxite exports since June last year has led to bauxite surplus, brought challenges to consume domestically as the Indonesia's alumina plants have limited capacity. Ronald Sulistyanto, Chairman of the Indonesian Bauxite and Iron Ore Entrepreneurs Association (Asosiasi Pengusaha Bauksit dan Bijih Besi Indonesia - APB3I), highlighted the struggle to secure external investment for alumina plant projects, while some entrepreneurs are forced to cut costs or halt production. However, there is hope for relief through potential relaxation of the export ban policy. Efforts are underway to boost alumina production capacity, although challenges persist in addressing the surplus bauxite issue.

Shanghai base metals all closed with gains in the overnight trading amid surging energy prices, and their counterparts on LME performed similarly on Wednesday.

Shanghai nonferrous metals closed mixed. Risk aversion sentiment was still high in light of sanctions from US and European counties on Russia. Nonetheless, it is specially pointed out by US officials that Russia’s oil and natural gas exports will be unaffected, easing the market sentiment to some extent.

On February 18, the National Development and Reform Commission and other 11 central departments jointly issued a notice on a series of policies to promote stable growth of industrial economy.

Optimising the national layout and accelerating the recycling industry.

SMM expects that the overseas copper concentrates expansion projects will accommodate a combined capacity of 1.1 million mt in metal content in 2022.

According to General Administration of Customs China imported 8.73 million mt of bauxite in December, up 13.32% month-on-month and 16.4% year-on-year.

Shanghai base metals mostly closed with gains on Thursday night. LME metals performed similarly on Thursday.