SHANGHAI, Aug 12 (SMM) – Shanghai aluminium prices surged on Monday August 12 as market talk suggested that torrential rain brought by Typhoon Lekima affected aluminium output in Shandong province, China’s top aluminium producing area.
The most-liquid SHFE October contract climbed as much as 2.05% to a more than two-month high of 14,215 yuan/mt on Monday August 12, before it ended up 1.98% on the day at 14,185 yuan/mt.
An SMM survey found that rainfall disrupted the shipment of molten aluminium to local smelters, but aluminium production was unaffected so far.
SMM retains its optimistic outlook on aluminium prices since July. Expectations of high-season demand in September will accelerate destocking at producers, and this will support prices in the medium term.