Ning Jizhe, deputy director of China’s National Development and Reform Commission, announced on Tuesday that China will continue to curtail domestic aluminium capacity this year to further advance its supply-side structural reform.
In response to the news, the SHFE’s May aluminium contract climbed to a high of 14,515 yuan per tonne during trade on Tuesday, before a lack of details regarding the proposed cuts caused the price to retreat.
“[Ning] did not give any details about the actual amount of aluminium capacity that is scheduled to be cut - as we have seen for the steel and coal markets - so the news did little to support the aluminium market,” a Shanghai-based trader said.
Copper, tin prices dip; rest higher
- The SHFE May copper contract price decreased 160 yuan or 0.3% to 52,460 yuan per tonne.
- The SHFE May tin contract price decreased 220 yuan or 0.2% to 146,370 yuan per tonne.
- The SHFE May zinc contract increased by 50 yuan or 0.2% to 25,445 yuan per tonne.
- The SHFE April lead contract price increased by 95 yuan or 0.5% to 18,735 yuan per tonne.
- The SHFE July nickel contract edged 20 yuan higher to 102,850 yuan per tonne.
Currency moves and data releases
- The dollar index was little changed at 89.52 as of 11.12am Shanghai time.
- In other commodities, the Brent crude oil spot price was down 0.25% to $65.25 per barrel as of 11.13am Shanghai time.
- In equities, the Shanghai Composite was up by 0.17% to 3,295.07 as of 11.15am Shanghai time.
- In data on Tuesday, US retail sales in February came in at 52.3, above the previous month's reading of 50.8.
- On the economic agenda today, UK house prices, EU revised gross domestic product and a host of US data including ADP non-farm employment change, revised non-farm productivity, revised unit labor costs, trade balance, crude oil inventories and the US Federal Reserve’s beige book are due.
- In addition, US Federal Open Market Committee members Raphael Bostic and William Dudley are speaking.
| LME snapshot at 02.00am London time | ||
| Latest three-month LME Prices | ||
| Price ($ per tonne) | Change since yesterday's close ($) | |
| Copper | 6,962.5 | -41.5 |
| Aluminium | 2,144 | -3 |
| Lead | 2,426 | -12 |
| Zinc | 3,310 | 8 |
| Tin | 21,445 | 15 |
| Nickel | 13,520 | -160 |
| SHFE snapshot at 10.00am Shanghai time | ||
| Most-traded SHFE contracts | ||
| Price (yuan per tonne) | Change since yesterday's close (yuan) | |
| Copper (May) | 52,460 | -160 |
| Aluminium(May) | 14,400 | -40 |
| Zinc(May) | 25,445 | 50 |
| Lead(April) | 18,735 | 95 |
| Tin (May) | 146,370 | -220 |
| Nickel (July) | 102,850 | 20 |
| Changjiang spot snapshot on March 7 | ||
| Range (yuan/t) | Change (yuan) | |
| Copper | 51,950-51,970 | 100 |
| Aluminium | 14,050-14,090 | 0 |
| Zinc | 25,520-26,320 | 140 |
| Lead | 18,700-18,900 | 150 |
| Tin | 145,000-146,500 | -250 |
| Nickel | 102,100-102,400 | 350 |