Data: China's aluminium import, export in Dec 2017

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

The alumina refineries in Shanxi, Shandong and Henan mostly experienced production cuts or suspensions due to environmental protection policies, which have totalled 15.02 million mt/year for the moment.

Shanghai base metals mostly went up on Wednesday morning after the market confidence was boosted by the expectations of effective vaccines against COVID-19 variant Omicron overnight. Meanwhile, their counterparts on LME mostly went downward.

As of December 13, the bauxite prices with an alumina to silica ratio of 5.0 and an alumina content of 58% in Jinbei county of Shanxi stood at 400-450 yuan/mt (including value-added tax (VAT), excluding resource tax) on a delivery to factory basis.

The daily fluctuations of spot aluminium prices were less than 200 yuan/mt last week, while aluminium scrap prices climbed 200 yuan/mt due to falling supply. Aluminium recycling from waste end products declined in H2 due to poor consumption.

The most-traded SHFE aluminium contract is expected to fluctuate between 18,500-19,100 yuan/mt and LME aluminium between $2,550-2,650/mt this week. Spot discounts are expected to narrow to 20 yuan/mt before delivery of the SHFE 2112 contract, but may widen to 70 yuan/mt following the delivery.

Shanghai nonferrous metals closed with mixed performance as the hawkish rhetoric from US Federal Reserve Chair Powell supressed the market, while the November Caixin PMI in China was relatively positive than before.

Shanghai base metals basically trended lower on Monday morning amid risk aversion sentiments after the discovery of a super strong variant of COVID-19 was discover last Friday. Meanwhile, their counterparts on LME all cruised higher.

Recently, the market has begun to discuss the impact of aluminium scrap on primary aluminium consumption next year. However, the impact of aluminium scrap on primary aluminium will not be as significant as imagined. It also has many limitations.

Shanghai nonferrous metals closed with mixed performance. Zinc surged amid supply fears after Glencore said that it is shutting down some zinc production capacity in Europe due to high energy prices, and the steeply rising ferrous products also boosted the SHFE board.