Shanghai aluminum prices rose on Friday, hovering near a 11-year high, on supply worries in China amid a fresh round of electricity restrictions in major producing province of Yunnan.
The most-traded September aluminum contract on the Shanghai Futures Exchange rose 1.6% to 19,890 yuan ($3,078.33) a tonne by 0542 GMT, heading towards a January 2010-high of 20,530 per tonne.
Three-month aluminum on the London Metal Exchange fell 0.3% to $2,583 a tonne pressured by a firmer dollar, but the contract was still set for its sixth straight monthly gain.
“(Prices are rising) because of Yunnan’s electricity control,” said a China-based trader.
Aluminum producers in Yunnan province received a notice from local authorities on July 27 to restrict their power consumption, with aluminum smelter Yunnan Shenho – a unit of China’s Henan Shenhuo Coal & Power Co Ltd – set to miss its 2021 output target due to the power cut.
* Aluminium inventories in ShFE warehouses
* The premium of LME cash aluminum over the three-month contract
* LME copper fell 0.8% to $9,743 a tonne, nickel shed 0.8% to $19,675 a tonne and ShFE copper dipped 0.1% to 71,420 yuan a tonne and ShFE zinc rose 0.6% to 22,420 yuan a tonne.
* Workers at Chile’s Andina copper mine operated by state-owned Codelco turned down the firm’s offer for a new collective contract on Thursday, paving the way for a potential strike at the facility, the union told Reuters.
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($1 = 6.4613 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Ramakrishnan M And Amy Caren Daniel)