The SHFE front month aluminium contract
soared to a three-and-a-half-year high of 15,185 yuan ($2,169) per tonne on Monday July 13, up 370 yuan per tonne from Friday’s close at 14,815 yuan per tonne. The price gave back some of the gains to close at 14,830 yuan per tonne on Tuesday but remains 31.1% higher than the annual low.
The price entered a mild uptrend on March 30 after falling to a four-year low of 11,310 yuan per tonne on March 23, increasing steeply in the past two weeks to breach 14,000 yuan per tonne on June 30.
“Strong end-user demand was the main reason for this round of aluminium price rally. We can clearly see that SHFE inventory has continued to drop since March, even as we enter the weaker demand season in July,” Fastmarkets aluminium analyst Yang...