The most-traded May aluminium contract on the SHFE decreased to 14,400 yuan ($2,275) per tonne as of 10.00am Shanghai time, down by 40 yuan or 0.3% from the previous day’s close of 14,440 yuan per tonne.
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
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