Shanghai aluminum fell due to signs of steady growth in global aluminum production
According to foreign news on November 21st, the London Metal Exchange (LME) aluminum fell Tuesday, fell to last week touched nearly three months low, due to the expected number of production countries China's pace of production will slow down, and the demand growth is weak.
London time at 17:00 on November 21st (Beijing time on November 22nd 01:00), three months aluminum fell 0.2%, reported at 2082 U.S. dollars per ton. The period fell to $2068.50, the lowest level since August 25th.
Oxford Economics commodity analyst Dan Smith said, "China's output reduction is significant, but there are rumors that some major producers have enough to cut production."."
"Recent economic data released in China show that economic growth has slowed down, and we should be worried about demand."
Binzhou, the site of China's Hongqiao group, Shandong, last month ordered 2 million 570 thousand tons of smelting capacity to be shut down during the winter, but some of the production capacity has been closed by authorities to crack down on illegal smelting activities.
The data released on Monday by the international aluminium Association (IAI) showed that in October, the output of raw aluminum in China increased to 2 million 179 thousand tons, up from 2 million 100 thousand tons in September. But in October, China's daily aluminum output fell from 86900 tons in September to 82100 tons.
China accounts for more than half of the global aluminum production, and the demand is also half of the global total demand. Global aluminium production is expected to be about 60 million tons this year.
China's economic growth slowed in October, including industrial production, fixed asset investment and retail sales less than expected. The government has increased the downward pressure on the economy in the four quarter due to the government's increased debt risk and factory pollution sanctions.
Analysts said the aluminum inventory at the Shanghai futures exchange reflected signs of weak demand in China, with aluminum inventories rising more than 24000 tons to 691000 tonnes last week. Aluminium stocks were about 72000 tons last December.
Three months of aluminum support in the 100 day moving average entry point of $2070, the strong resistance at $2135, that is, the 21 and 55 moving average crossing point.
LME three month copper closed up 1.2%, reported at $6909 per ton, earlier touched the highest price of $6928.50 since November 13th. Since the middle of September, copper inventories in LME registered warehouses have been reduced by more than 25% to 234375 tons, and traders say it is bullish news.
LME copper inventory canceled warehouse receipts accounted for more than 40%, also makes people worry about the LME market tight.
A spokesman for the global mining company Rio Tinto Plc said on Monday that the Kennecott large mine in the United States resumed smelting operations on Friday, but the force of refined copper production has not yet been lifted. Before the smelter shut down for nearly six weeks.
Copper resistance a moving average of around $6890 in 21 days, for the support of 55 day moving average of $6755.
Other basic metals, zinc three months rose 0.9%, to close at 3190 U.S. dollars per ton.
Lead for three months rose 0.8% to $2479.
Three months tin fell by 0.9%, reported at $19275 per ton.
Nickel rose 1.8% in three months to 11870 dollars per ton.