(Bloomberg) – Aluminum hit $ 3,000 a tonne in London for the first time in 13 years amid expectations that supply disruptions are here to stay, as demand continues to rise.
In the past three weeks, the metal advanced 14%, as supply risks grow across the industry, from bauxite mining in Guinea and alumina refining in Jamaica, to aluminum smelting in China and more. there.
Chinese producers took a further blow on Monday when Steelhome reported that Yunnan Province, one of the Asian nation’s largest aluminum producers, will impose production restrictions starting this month in an effort to meet reduction targets. energy intensity. Smelters in the European Union are also facing rising costs with carbon credits and energy inputs at record levels, said Goldman Sachs Group Inc.
“In China and increasingly in the EU, the political risk to aluminum supply is growing,” Goldman analysts, including Jeff Currie, said in a note published Monday. While the bank does not see the recent hit in Guinea as a material impact on bauxite, upside risks persist, while regional tensions could create further logistical bottlenecks.
Supply problems will haunt the industry for the rest of this year and most of 2022, according to many participants at the Aluminum Summit in Chicago. Some even project that it could take up to five years to resolve the problems. Metal prices have risen about two-thirds since last year.
Aluminum Corp. of China Ltd., the country’s largest foundry, rose 8.1% in Hong Kong on Monday. Chinese stocks could see a new rating as government measures to curb steel production with the intention of reducing emissions could boost prices for cement, steel and aluminum, the Citigroup Inc. analyst said in a note. Jack Shang.
Nota Original:Aluminum Hits $3,000 for First Time in 13 Years on Supply Snarl
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