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METALS-China aluminium hits 5-year high on capacity closures
August 10, 2017 / 3:19 AM / a month ago

METALS-China aluminium hits 5-year high on capacity closures

    MELBOURNE, Aug 10 (Reuters) - China aluminium extended gains
on Thursday to strike its highest since 2012, with investors
flooding into the market on prospects that capacity closures in
the world's top producer would tighten supply.
    
    FUNDAMENTALS
    * SHFE ALUMINIUM: Shanghai Futures Exchange aluminium
 had climbed 1.4 percent to 16,275 yuan ($2,443) a tonne
by 0240 GMT, having earlier hit its highest since May 2012 at
16,460 yuan. 
    Open interest flew to a record-high around 900,000 lots and
was up by 50 percent since Aug. 1. 
    * LME ALUMINIUM: LME aluminium hovered near its highest in
more than two years above $2,000 a tonne.
    * CHINA POLLUTION CRACKDOWN: China's push for blue skies is
roiling supplies and boosting prices of key raw materials from
soymeal to ferroalloys as the government ramps up smog checks
and forces some factories in the world's top commodities market
to close or suspend operations.
    * LME COPPER: London Metal Exchange copper was
trading at $6,470 a tonne, down 0.2 percent. That followed a
slightly softer close the day before, when investors booked
profits after prices marked their highest since December 2014 at
$6,515 a tonne.
    * SHFE COPPER: Shanghai Futures Exchange copper
slipped by half a percent to 50,890 yuan a tonne.
    * LME LEAD: London lead played catch up, rising
nearly 1.7 percent. China research firm Antaike said the start
of environmental inspections in Sichuan province had prompted 60
percent of local lead-zinc mines to shut down for month-long
maintenance. That could mean lower supplies of zinc and lead in
August and September. [nL5N1KV2YU
    * CHINA ALUMINIUM: China's top aluminium foil producers are
preparing a legal defence challenging a preliminary U.S. ruling
on Wednesday that would impose hefty penalties on imports from
the world's top producers, two sources familiar with the matter
said.
    * NICKEL CUTS: First Quantum Minerals Ltd said on
Wednesday it planned to suspend operations at its Ravensthorpe
nickel mine in Western Australia at the beginning of next month
due to persistently weak nickel prices, affecting around 450
employees and contractors.
    * NICKEL DEMAND: The rise of electric vehicles is driving
the world's biggest mining house, BHP,, to
switch gears and invest heavily in its long-suffering nickel
business.
    * NICKEL SUPPLY: Nickel producer Vale Indonesia
said Indonesia's recent policy shift to allow ore exports is
helping keep global prices of the metal low, and complicating
efforts to establish partnerships for new smelter investments.

    * For the top stories in metals and other news, click       
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    DATA/EVENTS    
    0645  France Industrial output Jun 
    0830  Britain Industrial output Jun 
    1230  U.S. Weekly jobless claims 
    PRICES    
    
 BASE METALS PRICES                   0239 GMT           
 Three month LME copper                              6471
 Most active ShFE copper                            50860
 Three month LME aluminium                         2039.5
 Most active ShFE aluminium                         16270
 Three month LME zinc                                2949
 Most active ShFE zinc                              24400
 Three month LME lead                                2389
 Most active ShFE lead                              19365
 Three month LME nickel                             10825
 Most active ShFE nickel                            88170
 Three month LME tin                                20375
 Most active ShFE tin                              147010
                                                         
 BASE METALS ARBITRAGE                                   
 LME/SHFE COPPER             LMESHFCUc3             615.9
 LME/SHFE ALUMINIUM          LMESHFALc3            471.73
 LME/SHFE ZINC               LMESHFZNc3           1029.19
 LME/SHFE LEAD               LMESHFPBc3             46.05
 LME/SHFE NICKEL             LMESHFNIc3           1846.46
 


($1 = 6.6625 Chinese yuan renminbi)

    
 (Reporting by Melanie Burton; Editing by Joseph Radford)
  
 
 

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