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Aluminum prices fell sharply. Foreign media said that China’s coal production increased greatly to alleviate the supply shortage. Aluminum plants are opening their slots

Aluminum prices fell sharply on Thursday as China, the largest aluminum producer, said its coal production had increased significantly and would continue to increase, helping to alleviate the power crisis that forced aluminum plants to reduce production. At 1743 GMT, London Metal Exchange (LME) index futures aluminum fell 3.7% to US $2559 per ton. Aluminum prices have fallen 20% since hitting a 13 year high of $3229 in mid October. China’s coal prices peaked around mid October and have since fallen by about 50%.
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Aluminum production requires a lot of electricity. Cheaper and more adequate coal supply should mean cheaper and more adequate electricity supply. A trader based in London said, “smelters start up!!” however, independent analyst Robin BHAR said that China still lacks energy and there is no guarantee that smelters will give priority to electricity. He added that the market supply was still insufficient and prices were unlikely to fall sharply. According to the dispatching data, the national daily coal output again exceeded 11.7 million tons on November 3. With the continuous implementation of various measures to increase production and supply, the national daily coal output is expected to exceed 12 million tons. Analysts surveyed by Reuters last month said they expected a supply shortage of 893000 tons in the aluminum market with an annual output of about 65 million tons in 2021 and 396000 tons in 2022. They expect that the average spot aluminum price of LME will be US $2695 per ton next year. LME copper fell 0.3% to US $9434 per ton; Zinc futures fell 2.0% to US $3240 per ton; Lead futures fell 0.8% to US $2354.50 per ton; Tin futures fell 0.3% to US $37000 per ton. Nickel bucked the trend and rose 0.3% to US $19225 per ton


Post time: Nov-05-2021