MNI BRIEF: China Aluminium Rebound Likely In September
MNI (LONDON) - Aluminium prices in China are likely to trend higher in September given favourable macro conditions and declining production expectations in Yunnan, Shanghai Metals Market analysts said on Thursday.
China’s aluminium production was expected to grow near 1.4% y/y in September to around 3.6 million mt, with the most-traded Shanghai Futures Exchange aluminium contract to fluctuating between 18,750 and 20,100 yuan/mt, the analysts said. Following August's consumption off-season, orders from the photovoltaic and automotive sectors had improved, leading to slight recovery in some firms' operations, the analysts continued.
China's plans to increase steel production using the low-carbon direct reduced iron (DRI) process over the next 10 years will reduce Beijing’s reliance on Australian iron ore by potentially tens of millions of tonnes per annum, as the technique favours magnetite ores more common to mines in Guinea and South America, a Chinese commodity expert recently told MNI. (See MNI INTERVIEW:China Decarbonisation To Lower Aussie Ore Demand)