Aluminum Prices Surge on Smelter Closure and Other Good News

SHANGHAI, Aug. 27 (SMM) – A series of positive news cheered the aluminum market. The October-delivery aluminum in SHFE market hit a high of 14,520 yuan per tonne on Wednesday, closing the day at 14,460 yuan per tonne.

Alcoa’s latest closure of one costly smelter in Italy further buoyed up market sentiment following Rio Tinto’s record-high premiums for Oct.-Dec. aluminum shipments to Japanese buyers and a tax hike on bauxite in India.   

“The closure of Italian smelter by Alcoa will drive up both LME and SHFE aluminum prices as this will fuel market speculation over supply”, said one analyst from Shanghai Dalu Futures in an SMM interview.   

In south and east China’s spot markets, suppliers were eager to sell goods at highs, but higher prices turned buyers away on Wednesday, Shanghai Metals Market learned.  

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