Aluminium gains on supply uncertainty and broad risk-on mood
XLB•Aluminium rose as supply uncertainty and falling warehouse stocks supported prices, while broader risk-on sentiment also helped. LME aluminium gained 0.34% to $3,097.5 a ton, and SHFE aluminium edged 0.11% higher to 23,765 yuan a ton.
1. Aluminium prices rise
Benchmark three-month aluminium on the London Metal Exchange was up 0.34% at $3,097.5 a metric ton by 0300 GMT. The most-traded aluminium contract on the Shanghai Futures Exchange edged 0.11% higher to 23,765 yuan a ton.
2. Warehouse stocks fall
Orders were placed to withdraw 3,500 tons of aluminium from LME-registered warehouses in Asia on Tuesday. LME stocks are overwhelmingly of Russian origin, which many traders have shunned, while aluminium volumes in SHFE-monitored warehouses fell more than 10% last week to 212,858 tons. A market researcher said firm prices and healthy trading volumes pointed to buying conviction, with supply uncertainty and limited prompt availability providing support.
3. Risk-on mood supports metals
A Singapore-based aluminium trader said prices were tracking stock market performance as broader risk appetite improved. South Korean shares rallied 6% after SK Hynix reported higher-than-expected third-quarter profits, and US stocks closed higher on Tuesday. Copper was mixed ahead of the Federal Reserve meeting: LME copper edged down 0.23%, while SHFE copper gained 0.41%.
