Shanghai aluminium prices hit a 912year high on Tuesday, as supply concerns rose after an aluminium hub in top consumer China ordered power cuts and output curbs.
The Chinese city of Baotou in Inner Mongolia, a major aluminium producing region, ordered some shutdowns in a bid to meet its energy consumption targets for the first quarter.
CRU analyst Wan Ling said this could translate to a 100,000tonne annual aluminium output reduction.
The mosttraded April aluminium contract on the Shanghai Futures Exchange climbed as much as 2.6 to 17,980 yuan 2,766.15 a tonne, a level unseen since August 2011, before easing to close up 0.6 at 17,630 yuan a tonne.
The threemonth aluminium on the London Metal Exchange advanced as much as 0.4 to 2,227 a tonne but was last down 0.2 at 2,213 a tonne.
Figures released by the National Bureau of Statistics pointed to strong aluminium production in China over the first two months, ING analysts said, referring to an 8.4 annual rise in Chinas aluminium output in the first two months of 2021.
However, investors appear to be more forwardlooking, and instead focused on the ongoing production curtailments in Inner Mongolia, they added.
Aluminium inventories in LME warehouses were hovering around their highest since March 2017, while stockpiles in ShFE warehouses hit a high unseen since April 2020 last week, latest data showed.
LME cash aluminium was at a 25.25 discount to the threemonth contract, suggesting abundant supply….