Aluminium rises on China supply disruption worries

0
20

Article content

HANOI — London aluminum prices rose on Tuesday, as top producer China’s commitment to curb carbon emissions sparked worries that supply of the energy-intensive metal will be limited.

Three-month copper on the London Metal Exchange rose 1.5% to $2,432.50 a tonne by 0253 GMT, copper advanced 0.9% to $9,909.50 a tonne, zinc was up 0.4% to $2,936.50 a tonne, while nickel fell 0.2% to $17,635 a tonne.

“We expect aluminum to remain supported in the short term amid concerns climate change policies in China will curb output,” said ANZ analysts in a note.

“Coal-fired power is used by more than 80% of China’s aluminum smelters. Pollution-reduction policies are likely to push many of them to hook up to the grid, thereby increasing their costs,” they added.

FUNDAMENTALS

* The global copper market should see a surplus of 79,000 tonnes this year and of 109,000 tonnes in 2022, the International Copper Study Group said on Monday.

* Top copper producer Chile saw output of the red metal fall for the tenth consecutive month in March, official data showed, marking a modest but continual slide in production that began shortly after the COVID-19 pandemic struck the country.

* Indonesian state miner Aneka Tambang (Antam) said on Monday its nickel ore output rose more than four-fold in the first three months of 2021 compared to the same period a year ago.

* The Shanghai Futures Exchange is closed for a public holiday.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asia’s share markets were mostly higher as regional equity investors looked to signs of recovery from the coronavirus pandemic as major economies around the world reopen.

DATA/EVENTS (GMT)

0430 Australia RBA Cash Rate May

0830 UK Markit/CIPS Mfg PMI Final April

1230 US International Trade March

1400 US Factory Orders MM March

(Reporting by Mai Nguyen; Editing by Rashmi Aich)