LME Aluminium climbed after two refineries announced that they would cut production due to high electricity prices.

(LME) aluminum prices on the London Metal Exchange rose on Thursday after two smelters cut production due to high electricity prices, raising fears of potential shortages.

17:00 London time (01:00 Beijing time)), LME aluminum for three-month delivery rose 0.27%, or $7.50, to $2818 a tonne, after falling for two days in a row.

Buoyed by supply concerns, the Shanghai Aluminum 2202 contract rose 3.6 per cent in intraday trading on Thursday to an intraday high of 20585 yuan per tonne, the highest level since the main contract on October 27th.

Alcoa (Alcoa) announced that its Spanish company San Ciprian would suspend production for two years, while Norway's Hydro (Norsk Hydro) announced that production at its majority-owned aluminum plant in Slovakia would be cut to about 60 per cent of total capacity.

"they [Alcoa] may have taken the lead in taking this action, but they are unlikely to be the last European metal producers to do so and energy costs are expected to double in 2022," Kingdom Futures's Malcolm Freeman said in a report.

The cost of electricity and natural gas across Europe has soared this year, causing smelters, chemical plants and other sectors to cut production.

Manufacturing activity in China, the world's largest consumer of metals, may neither grow nor shrink in December, according to a survey.

The State-owned assets Supervision and Administration Commission of China recently issued the guidance on promoting the High-quality Development of Central Enterprises and doing a good job of carbon neutralization. The guidance aims that by 2025, the comprehensive energy consumption of the output value of 10,000 yuan of central enterprises will be 15% lower than that of 2020.

LME copper for delivery in three months rose 0.11 per cent to $9691.50 a tonne.

"Copper needs to expand for the second year in a row, especially the recently concluded United Nations Climate change Conference (COP26), which shows that governments are increasingly willing to give priority to clean energy," said Howie Lee, an economist at (OCBC) at OCBC Bank in Singapore.

"unresolved supply chain bottlenecks are likely to persist into the second half of 2022, which is also expected to support prices," he said. "

A community adviser and a government source said on Wednesday that the Peruvian government was still a long way from securing a deal to restart the huge Las Bambas copper mine, and that it would hold an important meeting with the local community the following day. The operation of the mining company was disrupted by roadblocks set up by the local community.