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|
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|SHFE snapshot at 10.00am Shanghai time|
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|Changjiang spot snapshot on March 7|
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