SHFE aluminium fall linked to collapse of Chalco-led pricing campaign

SHFE aluminium's price drop to a more than six-year low is being driven by strong economic factors, but is also being linked to the collapse of Chalco's efforts to support prices.

Aluminium Corp of China (Chalco) had formed a coalition with eleven local smelters to boost aluminium prices, Metal Bulletin reported earlier this year.
However, unlike each of the past several months, there has been no plan so far for the smelters to meet in July, and the meetings may cease for good, market sources said.
“The latest meeting of the alliance in early June didn’t end in harmony , as some smelters complained that Chalco’s own subsidiaries didn’t act on a united front,” a source said.

On June 6, the...

Published

Linda Lin

July 06, 2015

12:11 GMT

Shanghai