LME Aluminum to Hover at Highs (2017-8-10)

Global prices for nickel, copper, and aluminum have been wildly swinging the past two years. With application in renewable energy infrastructure via EVs and a vehicle for sustainability goals, the metals are now pivotal commodities of the game of energy transition. Yet, the double pressure of new energy demands and green regulation is still the prime driver of their volatile prices.

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.

Aluminum prices have made a strong comeback over the past two days, but this is no time to cheer up since negative factors are simmering, SMM warns. 

Prebaked anode prices in China’s domestic market rose by about 620 yuan per tonne in January 2017 after Shandong Weiqiao raised its procurement price. 

Henan’s provincial government held an emergency response meeting on December’s 19 night after some local industrial enterprises took no measures to reduce pollution emissions.

Base metal prices on the SHFE are expected to get a boost from weak dollar on Thursday, Shanghai Metals Market foresees.

Market will eye minutes of the US Fed’s latest policy meeting. LME tin will test support at USD 18,000/mt.

It is widely expected that the BOE will cut interest rate during its August meeting. LME tin will test resistance at USD 18,200/mt.