Shanghai aluminium hits 11-yr high as China-Australia tensions stoke supply woes
Shanghai aluminium prices touched a more than 11-year high, as escalating tensions between China and Australia raised concerns of reduced supply from a major producer of the metal.
The most-traded June aluminium contract on the Shanghai Futures Exchange SAFcv1 advanced 2% to 19,255 yuan ($2,971.63) a tonne by 0522 GMT, after hitting its highest since January 2010 in the session of 19,320 yuan.
Three-month aluminium on the London Metal Exchange CMAL3 rose 0.5% to $2,457.50 a tonne. The contract hit $2,470 a tonne earlier in the session, its highest since April 2018.
China’s state economic planner said it has “indefinitely” suspended all activities under the China-Australia Strategic Economic Dialogue, amid strained relations between Beijing and Canberra.
“This is bullish for aluminium, from the physical market perspective,” a Singapore-based trader said.
China is the top consumer of aluminium, while Australia is a major producer of raw materials bauxite and alumina.
* LME copper CMCU3 edged up 0.4% to $9,987 a tonne, nickel CMNI3 dropped 1% to $17,710 a tonne while ShFE nickel SNIcv1 jumped 2.1% to 131,780 yuan a tonne, ShFE copper SCFcv1 climbed 1.3% to 72,930 yuan a tonne and ShFE tin SSNcv1 advanced 2.7% to 197,330 yuan a tonne.
* Global copper smelting rebounded in April from the lowest levels in at least five years in the previous month as a price rally spurred more activity, data from satellite surveillance of copper plants showed.
* Investment flows into commodity funds so far this year have hit a record high, bolstered by a recovery in global economic activity and stimulus measures from governments around the world.
* Britain is exploring the creation of a national stockpile of so-called rare earth metals amid rising fears that country’s efforts to adopt electric cars are at risk from a Chinese stranglehold on supplies, The Telegraph reported.
Source: Reuters (Reporting by Mai Nguyen; Editing by Rashmi Aich)