China aluminium smelters meet to address 'irrational' price spike

China Hongqiao

30/08/2021 13:32

Aug 30 (Reuters) - The China Nonferrous Metals Industry
Association (CNIA) held a meeting of the country's top aluminium
smelters on Monday to address what it described as an
"irrational surge" in aluminium prices, which hit a 13-year high
in Shanghai.
    Aluminium on the Shanghai Futures Exchange  SAFcv1  rose as
much as 4.2% on Monday to 21,550 yuan ($3,332), the highest
since August 2008, as production curbs in key Chinese smelting
regions - often aimed at easing the strain on the power grid -
spark fears of tight supply.  urn:newsml:reuters.com:*:nL1N2Q10HM
    The 10 companies that participated in the CNIA video meeting
included state-run Aluminum Corp of China Ltd  601600.SS , or
Chalco, and top private-sector producer China Hongqiao Group
 1378.HK , according to a CNIA statement published by its
research arm, Antaike.
    Participants agreed there was "no obvious gap" between
supply and demand in the third-quarter aluminium off-season and
that they would strive to cope with rising costs by improving
efficiency, said the statement, which added that the meeting was
also aimed at preventing price speculation.
    "Companies will continue to ensure supply and stabilise
market expectations," it added.
    Shanghai aluminium is up more than 36% year-to-date even as
China continues with a rare release of strategic metal reserves
- one of a number of measures it is taking to try to tame high
commodity prices and ease the pressure on manufacturers.
 urn:newsml:reuters.com:*:nL1N2PY0BI
    Participants agreed that keeping aluminium prices "within a
reasonable range is conducive to the stability and long-term
development of the industry," the CNIA said of Monday's meeting.
    "We will ... take the lead in maintaining the order of
commodity market prices and creating a good industry ecology,"
it added.
   
    ($1 = 6.4682 Chinese yuan renminbi)

 (Reporting by Tom Daly; Editing by Susan Fenton)
 ((tom.daly@thomsonreuters.com; +86 10 5669 2119;))