Energy usually accounts for approximately 40% of aluminum smelters' operating costs. Due to surging electricity prices and gas costs, more European aluminum smelters were forced to close or cut production, which exacerbated concerns on short supply.
The LME aluminum inventories have dropped by more than 50% from the high level of 1.96 million tons in March last year.
Due to such concerns on supply amid surging power costs in Europe, aluminum futures on the Shanghai Futures Exchange (SHFE) have risen for five trading days in a row. The most-traded February SHFE aluminum contract hiked by 2.4% to RMB 21,580/ton on January 11, and the highest intraday hit RMB 21,600/ton, a new peak since October 26, 2021.
Shanghai Aluminum risen for 5 consecutive days on supply concerns
12 Jan 2022 16:14 reported by Joy Liu
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