SHFE Aluminium to Continue to Outperform LME Aluminium on Supply Disruptions

Published: Sep 6, 2021 14:22

Save

SHANGHAI, Sep 6 (SMM) – SHFE aluminium climbed last week and is poised for further gains this week on supply concerns triggered by power curtailment in many parts of China.

SHANGHAI, Sep 6 (SMM) – SHFE aluminium climbed last week and is poised for further gains this week on supply concerns triggered by power curtailment in many parts of China.

The most-traded SHFE 2110 aluminium contract hit a high of 21,550 yuan/mt last week, and is expected to climb further to 21,100-21,700 yuan/mt this week, while LME aluminium is expected to between $2,650-2,750/mt. The impact of power curtailment continues. Xinjiang is strictly controlling aluminium capacity in operation, while Guangxi has tightened power curtailment, intensifying concerns about the future aluminium supply.

Market will continue to pay attention to the impact of electricity curtailment on aluminium supply. Some areas that fail to meet energy consumption requirements may face tougher electricity curtailment. The recovery of aluminium consumption will be relatively slow due to high aluminium prices, slowing down the decline in social inventory.

SHFE aluminium prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

16 hours ago

US-Canada Tariff War Escalates: Retaliatory Measures and Bans on Goods Imposed

The US-Canada tariff war has escalated once again. Canada took the lead in imposing retaliatory tariffs on approximately $20 billion worth of US goods, and the US responded with tough countermeasures: starting September 15, a 50% tariff will be imposed on about 100 categories of Canadian products; starting September 29, imports of certain Canadian motor vehicles and dairy products will be further banned.

16 hours ago

ECB Raises Interest Rates by 25 Basis Points, Signals Further Hikes Amid Inflation Concerns

The European Central Bank announced a 25 basis point hike in all three key interest rates, in line with market expectations. The central bank noted that the Middle East conflict continues to push up inflation, and inflation is expected to remain well above the target level for an extended period. According to people familiar with the matter, ECB officials expect to raise rates further, with the next move possibly coming as soon as October.

16 hours ago

China's Auto Sales Drop 5.1% in August, NEV Sales Surge 17.8% YoY, Exports Up 65.3%

CAAM data shows that in August, China's auto sales were 2.712 million units, down 5.1% YoY. Among them, NEV performance was impressive, with sales reaching 1.643 million units, up 17.8% YoY, accounting for 60.6% of total new vehicle sales. In terms of exports, auto exports in August were 1.01 million units, up 65.3% YoY; NEV exports were 526,000 units, up 1.3x YoY.

16 hours ago