METALS-Aluminium climbs to three-week high with supply tightness back in focus
XLB•Aluminium hits three-week high on tight supply
Aluminium rose for a fifth straight session on Thursday, touching its highest in three weeks on continued supply tightness and a slight improvement in economic risk sentiment that also boosted other industrial metals.
Benchmark three-month aluminium CMAL3 on the London Metal Exchange was up 0.6% at $3,303 a metric ton in official open-outcry activity. The metal earlier hit $3,306.50 for its highest since August 13.
"Aluminium is supported by physical market tightness and expectations of firmer seasonal demand in China," said ING commodities strategist Ewa Manthey.
LME aluminium stocks MALSTX-TOTAL of 245,975 tons are the lowest since 1990. In top metals consumer China, Shanghai Futures Exchange inventories AL-STX-SGH have fallen for 11 weeks running from a six-year high of 528,885 tons on June 12 to 391,498 tons.
Analysts expect the aluminium market to remain in deficit this year despite hopes for returning supply from smelters in the Middle East, which accounts for about 9% of global capacity.
