Aluminium climbs over 13-year peak on China, Guinea supply woes

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Aluminum prices hit a more than 13-year high on Thursday, as output curbs in top consumer China and fears of disruptions from major bauxite producer Guinea lifted sentiment.

Three-month aluminum on the London Metal Exchange advanced as much as 1.6% to $2,837.50 a tonne, its highest since August 2008.

The most-traded October aluminum contract on the Shanghai Futures Exchange jumped as much as 3% to 22,480 yuan ($3,478.37) a tonne, a level unseen since March 2008.

Output curbs in China, the top global aluminum producer, have weighed on stockpile availability, while political turmoil in Guinea, China’s largest supplier of bauxite, added to the nervousness.

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“Political unrest in Guinea has significantly raised the risk of disruption. At the same time, power shortages and environmental measures are restricting output in China,” ANZ analysts said in a note.

“Together, these issues are likely to support aluminum prices in the short term,” they said, forecasting a global deficit of 750,000 tonnes this year for the metal.

FUNDAMENTALS

* ShFE nickel hit a record 151,670 yuan a tonne, while LME nickel touched its highest since May 2014 at $20,145 a tonne, buoyed by low inventories and demand hopes from the stainless steel sector.

* LME copper advanced 0.5% to $9,290.50 a tonne at 0552 GMT, LME tin increased 1.2% to $32,605 a tonne, while ShFE copper eased 0.4% to 68,690 yuan a tonne and ShFE tin climbed 2.4% to 250,820 yuan a tonne.

* Indonesian tin miner PT Timah expects global tin prices to stay above $30,000 per tonne for the rest of the year amid low inventory condition of the metal, finance director Wibisono said on Wednesday.

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($1 = 6.4628 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Shounak Dasgupta and Rashmi Aich)