Feb 8 (Reuters) – London aluminium prices hit a near four-month high on Tuesday boosted by dwindling inventories, while coronavirus curbs in the Chinese city of Baise has hit transportation of alumina raising concerns over a potential cut in production.
Three-month aluminium on the London Metal Exchange CMAL3 was up 1.2% at $3,170 a tonne as of 0250 GMT, after hitting a peak since Oct. 19 at $3,172 earlier.
The most-traded March aluminium contract on the Shanghai Futures Exchange SAFcv1 rose 1.4% to 22,465 yuan ($3,533.90) a tonne. Earlier in the session, the contract hit 22,615 yuan, a peak since Oct. 22 last year.
Aluminium stocks MALSTX-TOTAL in LME approved warehouses fell to 768,250 tonnes, their lowest level since February 2007.
The premium of LME cash aluminium over the three-month contract MAL0-3 has risen to $40 a tonne, highest since July 2018, indicating tightening nearby supplies.
Antaike, a government-backed consultancy, said in a statement on Monday that part of local alumina production – a raw material used to make aluminium – has been affected by the COVID-19-related restrictions in Baise in the Guangxi region and more producers saw transportation disruptions.
The threat of sanctions on Russia, a major aluminium producer, if it attacks Ukraine has also intensified supply concerns.
FUNDAMENTALS
* LME copper CMCU3 rose 0.4% to $9,812 a tonne, nickel CMNI3 dipped to $23,270, lead CMPB3 edged 0.3% higher to $2,203, zinc CMZN3 was up 0.4% at $3,640.5 and tin CMSN3 inched up 0.1% to $42,985.
* ShFE copper SCFcv1 eased 0.3% to 70,620 yuan a tonne, nickel SNIcv1 gained 0.9% to 172,330 yuan, zinc SZNcv1 rose 0.7% to 25,345 yuan, lead SPBcv1 fell 0.4% to 14,810 yuan and tin SSNcv1 was 0.6% higher at 333,730 yuan.
* Mining activity at Peru’s massive Las Bambas copper mine, which accounts for 2% of global supply, has started to fall sharply after protesters blocked a key access road late last month, according to unreported power use data and a company source.
* For the top stories in metals and other news, click TOP/MTL or MET/L
MARKETS NEWS
* Asian equities consolidated recent gains, as investors’ sentiment improved amid strong results by U.S. companies, helping stocks recover from the worst start to the year since 2016, while a resurgent euro paused ahead of U.S inflation data. MKTS/GLOB
DATA/EVENTS (GMT)
1330 US International Trade Dec
($1 = 6.3570 Chinese yuan renminbi)
(Reporting by Eileen Soreng in Bengaluru and Min Zhang in Beijing; Editing by Rashmi Aich)
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