More Of Aluminum

Author:Shanghai Yika Addtime:2016/7/11

With no overriding pressure either externally or internally to restrain China's aluminum sector, it will, it seems, be left largely to do its own thing.

Which right now seems to be to increase production again.

The recent monthly output figures from China's Nonferrous Metals Industry Association have been wildly volatile, even by the erratic standards of the past.

But the current trend is firmly upwards. Annualized run rates increased by almost 650,000 tonnes over the course of April and May.

May's average daily output of 86,290 tonnes was the highest since November last year.

Smelters are reactivating capacity in response to the rally in local prices.

The most active contract on the Shanghai Futures Exchange (ShFE) is trading back above the 12,000 yuan-per-tonne level, having fallen below 10,000 last November.

All the previous talk of coordinated production cuts and strategic stockpiling has gone.

Its purpose with hindsight was to put a floor under prices by scaring off speculative short-sellers building up positions on the Shanghai market.

And in the future market of aluminum in Shanghai,the influence will grow much stronger,we'll be to see the result .

See More At:www.yikai-aluminum.com