SHANGHAI, Sept. 22 (SMM) –SHFE 1711 aluminum hit over 6-year high at 17,250 yuan/tonne on Wednesday afternoon after two pieces of breaking news.
An official from the Ministry of Environmental Protection said winter output cuts will not overlap with illegal capacity closures. Two producers in Henan began winter cuts in advance.
Two Producers in Henan Begin Winter Alumina and Aluminum Cuts Ahead of Schedule
These fueled the big gains, SMM explains.
How will the light metal perform next?
China Aluminum Stocks Continue Growing, SMM Says
These two pieces of news suggest winter cuts may be stricter than expected. So, more price gains are expected before the winter control takes effect, SMM predicts.
However, the most active SHFE aluminum might correct down to 16,500-16,600 yuan/tonne in the near term, SMM warns.
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