Shanghai aluminium steady as supply concerns weigh – ET Auto

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A deadly explosion at an oil terminal in Guinea destroyed fuel tanks and sparked fears over the country’s export of bauxite, the raw material to make the light metal.

Shanghai aluminium prices were relatively steady on Monday, supported by raw material supply risks and stable demand.

The London market is closed for the Christmas holiday.

The most-traded February aluminium contract on the Shanghai Futures Exchange closed daytime trade at 19,110 yuan ($2,677.18) per metric ton, unchanged from the previous session.

It rose as much as 1.5% to a two-month high in early trading.

A deadly explosion at an oil terminal in Guinea destroyed fuel tanks and sparked fears over the country’s export of bauxite, the raw material to make the light metal.

China imported 91 million metric tons of bauxite from Guinea in the first 11 months this year, accounting for 70.2% of its total imports, customs data showed.

The news promoted on Friday the biggest single-day gain by Shanghai alumina futures since they were launched in June.

The SHFE February alumina contract climbed on Monday to a record high of 3,329 yuan.

“Guinea’s fuel depot blast is having a growing impact on local miners, raising concerns over ex-China supply,” CITIC Futures analysts said in a note.

They added domestic bauxite supply had been affected by the recent production suspension at mines in the northern Shanxi province and pollution controls in northern China.

SHFE copper was unmoved at 69,080 yuan a metric ton, tin lost 0.2% to 209,440 yuan, zinc added 0.5% to 21,315 yuan and lead moved up 0.5% to 15,720 yuan.

Nickel was down 0.3% to 130,900 yuan. Market participants are assessing the possible impact on nickel and stainless steel production after a fatal explosion at a smelter furnace in Indonesia, the world’s top nickel producer.

Thirteen workers were killed and 38 injured on Sunday in the explosion at a facility on Sulawesi island owned by Indonesia Tsingshan Stainless Steel (ITSS).

  • Published On Dec 26, 2023 at 10:24 AM IST

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