(Adds comment, updates prices)
By Eileen Soreng
Jan 11 (Reuters) – Aluminium futures in China rose for a
fifth straight session on Tuesday, buoyed by falling inventories
and production cuts as smelters in Europe grappled with high
power prices.
The most-traded February aluminium contract on the Shanghai
Futures Exchange was up 2.3% at 21,570 yuan ($3,385.28)
a tonne by 0610 GMT. Prices earlier rose to 21,600 yuan, a peak
since Oct. 26.
Due to the uncertainty in overseas natural gas supply, the
production reduction may expand, Huatai Futures said in a note,
adding while downstream inquiries are active there are some
signs of weakening demand as the Chinese New Year holiday
approaches.
Data last week showed inventories in warehouses monitored by
the Shanghai Futures Exchange were at 314,859
tonnes, its lowest level since November 2021.
Stocks of aluminium in LME-registered warehouses
were last at 911,500 tonnes, down more than 50%
since hitting a 1.96 mln tonne high in March last year.
A surge in power and natural gas costs across Europe has led
to output reductions at smelters in the region, with an
aluminium smelter in Dunkirk, France, being the latest to
announce an output reduction.
Shanghai nickel for February delivery jumped as
much as 4.2% to hit a peak since Oct. 21 at 160,060 yuan a tonne
amid low inventories. Prices were last up 3.7% at 159,410 yuan.
Meanwhile, a power shutdown at a third-party data centre
caused connectivity issues at London Metal Exchange (LME),
impacting metals trading, according to media reports.
FUNDAMENTALS
* ShFE copper rose 0.2% to 69,850 yuan a tonne,
zinc was up 0.3% at 24,325 yuan, lead was flat
at 15,195 yuan and tin rose 0.3% to 299,260 yuan.
* Indonesia allowed 14 vessels loaded with coal to depart as
soon as they secure verifications from mining and transport
authorities, a senior minister said on Monday, easing an export
ban by the world’s top thermal coal exporter.
* Some of Wall Street’s biggest banks now expect four U.S.
interest increases this year starting in March, a more
aggressive call than a week ago.
* For the top stories in metals and other news, click
[TOP/MTL] or [MET/L]
($1 = 6.3717 Chinese yuan)
(Reporting by Eileen Soreng in Bengaluru; editing by
Uttaresh.V)
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