The most-traded July aluminium contract on the SHFE traded at 14,780 ($2,322) yuan per tonne as at 11.17 am Shanghai time, inching up 45 yuan per tonne from Monday’s close.
This is unsurprising given the escalating trade tensions between the United States and China, which saw the latter last week slap a one-month ban on non-ferrous scrap imports from the US.
Chinese aluminium alloy producers have forecast imminent price rises for their products in response to the ban.
A US delegation had traveled to Beijing last week to quell a potential trade dispute between the two nations, but after two days of discussions that ended last Friday, there was no public sign of an agreement.
In wider markets, investors will likely be keeping a close eye on US President Donald Trump’s decision on whether the US will pull out of the Iran nuclear accord.
“This is ahead of the May 12th official deadline for re-ratification of the existing deal which dropped sanctions against Iran in return for verifiable cessation of nuclear weapons development, allowing Iran to pump as much as one million more barrels of oil a day than previously,” ANZ Research said on Tuesday.
The London Metal Exchange reopens today after being closed on Monday due to national holidays.
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