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METALS-Aluminium jumps on more talk of Chinese output cuts
July 13, 2017 / 3:04 PM / 5 months ago

METALS-Aluminium jumps on more talk of Chinese output cuts

* Aluminium surges 2.8 pct to session peak of $1,943/T

* Expectations for shrinking Chinese supply drive up prices

* LME/ShFE arb: (Updates prices, adds comment)

By Jan Harvey

LONDON, July 13 (Reuters) - Aluminium rose nearly 3 percent on Thursday as concerns over potential supply curbs in number one producer China sparked a rally in the metal.

Talk that more capacity cuts were on the way in China fed into broader-based concerns over slowing output to push prices higher, analysts said. An industry association said last month that China will launch a crackdown to curb illegal expansion of aluminium capacity.

“There’s some talk circulating of some more smelter closures as this regulatory monitoring is ongoing,” Societe Generale analyst Robin Bhar said. “The supply-side reforms in China seem to be catching the headlines again, and that is spurring some fund buying that is coming through.”

London Metal Exchange warehouse inventories hit their lowest since 2008 this week.

* ALUMINIUM PRICES: Three-month LME aluminium was up 2.4 percent at $1,933.50 a tonne at 1457 GMT. Earlier it hit a peak of $1,943 a tonne.

* INVENTORIES: Aluminium stocks in LME warehouses MAL-STOCKS fell another 6,525 tonnes, data on Thursday showed, taking them back towards this week’s near nine-year low.

* RUSAL: Russian aluminium giant Rusal expects the global aluminium deficit to widen to between 1.7 million tonnes and 1.8 million tonnes in 2018 from 1.3 million tonnes in 2017, Deputy Chief Executive Oleg Mukhamedshin said.

* FINANCIAL MARKETS: The dollar steadied and world shares hit their fourth all-time high in less than a month, while a rally in bonds stalled on fresh talk that the European Central Bank will start winding down its money-printing programme.

* COPPER PRICES: Three-month copper on the London Metal Exchange was 0.3 percent lower at $5,886.50 a tonne.

* IMPORTS: China’s imports of copper and copper products for June were unchanged with May at 390,000 tonnes, according to Reuters calculations based on official data, reflecting a decline in refined imports this year.

* COLLAHUASI: Chilean copper mine Collahuasi, a joint venture of Anglo American and Glencore will cut 115 jobs, including executives, as part of a plan to boost efficiency amid low prices for the metal.

* ZINC: LME zinc was down 1.1 percent at $2,801.50 a tonne, having climbed to its highest in more than three months on Wednesday on falling stocks in exchange warehouses, shortages and stronger demand from China.

* INVENTORIES: Zinc stocks in LME warehouses fell another 3,450 tonnes to 270,225, and are down more 35 percent since the start of the year. MZNSTX-TOTAL

* OTHER METALS: LME lead was down 1.4 percent at $2,293.50 a tonne, while tin was 0.1 percent higher at $19,915 a tonne and nickel was down 0.2 percent at $9,190.

Reporting by Jan Harvey; additional reporting by James Regan in Sydney; editing by Susan Thomas and Susan Fenton

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