The most-traded November contract price for the metal started to rally at the start of September on a continuing decline in the total volumes of aluminium in stock, and reached a 10-month high of 14,420 yuan per tonne on September 9.
It was up by 25 yuan per tonne from the previous 10-month high of 14,395 yuan per tonne on August 19. This was driven by enforced output cuts at major aluminium producers Xinfa Group and China Hongqiao.
“The aluminium inventory has dropped to around 950,000 tonnes, and may fall further to 800,000 tonnes within the next two months,” an aluminium analyst in eastern China said. “This will be enough to bring more capital into the Shanghai Futures Exchange and push the price [of aluminium] to 15,000 yuan per tonne by the end of October.”
Local media reported that the total aluminium inventory had dropped to 1.001 million tonnes on September 9,...