Latest Update in the China Aluminum Market

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on April 20, 2021

Prebaked anode prices were largely stable last week. Production in Shandong and Henan is picking up as environmental production restrictions are being gradually loosened, and the impact on supply will be mainly reflected in May. 

The most-traded SHFE 2105 aluminium contract hit a 10-year high of 18,460 yuan/mt last week, with the spread between the highest and lowest price for the week as large as 1,195 yuan/mt. The contract closed the week at 18,005 yuan/mt, up 520 yuan/mt or 2.97%.

Shanghai base metals set for a mixed start on Tuesday morning. China on Tuesday kept the one-year loan prime rate (LPR) unchanged at 3.85% and five-year LPR at 4.65%. 

The dollar slumped to a six-week low against major peers on Monday, with Treasury yields near their lowest in five weeks, after the U.S. Federal Reserve reiterated its view that any spike in inflation was likely to be temporary.

SHFE nonferrous metals rose for the most part on Monday April 19, mirroring trading in global markets.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on April 19, 2021

Volkswagen announced in March that it had cut production by more than 100,000 vehicles in January and February due to the lack of chips. Honda Motor announced that its Mexican plant would cease production from March 18. General Motors announced the temporary closure of its plant in Lansing, Michigan, and it was expected that it would not restart operations before April this year.