Aluminium gains as China April output down 1.2% on power curbs

Aluminum yesterday settled up by 0.26% at 208.85 as China’s aluminum output in April fell 1.2% from March, as power curbs in the southwest limited production of the metal. China produced 3.33 million tonnes of aluminum last month, down from 3.37 million tonnes in March, though that was up 0.8% compared with a year ago, according to data from the National Bureau of Statistics.

Output growth is being capped by ongoing issues in Yunnan province, China’s fourth-biggest aluminum-producing province, with about 12% of the country’s total capacity. Yunnan relies heavily on hydropower for power generation but has asked aluminum producers to cut production since last September amid low rainfall and water levels. The capacity of 255,000 tonnes per annum also resumed last month, mostly in the southwestern Guangxi and Guizhou regions, according to a survey by information provider Mysteel. For the first four months of the year, China produced 13.3 million tonnes of aluminum, up 3.9% from the corresponding period in 2022, the data also showed. Aluminum stocks at three major Japanese ports fell by 3.3% to 358,400 tonnes at the end of April from 370,700 tonnes at the end of March, Marubeni Corp said.

Technically market is under short covering as the market has witnessed a drop in open interest by -0.86% to settle at 2994 while prices are up 0.55 rupees, now is getting support at 207.9 and below same could see a test of 207 levels, and resistance is now likely to be seen at 209.6, a move above could see prices testing 210.4.



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