The price of aluminium yesterday increased by 0.26% to 208.85 as China’s output of the metal decreased by 1.2% from March to April due to power restrictions in the region’s southwest. The National Bureau of Statistics reports that China produced 3.33 million tonnes of aluminium in March, down from 3.37 million tonnes in February but up 0.8% from a year earlier.
The fourth-largest producer of aluminium in China, with roughly 12% of the nation’s capacity, Yunnan province’s persistent problems are limiting output growth. Yunnan relies primarily on hydropower to generate electricity, but due to low rainfall and water levels, the government has instructed aluminium manufacturers to reduce production since last September.
According to a survey by information provider Mysteel, the 255,000 tonnes per year capacity also resumed last month, primarily in the southwest Guangxi and Guizhou areas. The report also showed that China produced 13.3 million tonnes of aluminium during the first four months of the year, an increase of 3.9% from the same period in 2022.
From 370,700 tonnes at the end of March to 358,400 tonnes at the end of April, aluminium stocks at three significant Japanese ports decreased by 3.3%, according to Marubeni Corp.Technically, the market is being shorted as open interest has decreased by -0.86% to settle at 2994 while prices have increased by 0.55 rupees. Currently, aluminium is receiving support at 207.9, and a move below that level could result in a test of 207 levels. Resistance is now anticipated to be seen at 209.6, and a move above that level could result in a test of 210.4.