LONDON Aluminum prices firmed in official trading on the London Metal Exchange June 5 amid technical buying and news that Aluminium Corp. of China (Chalco) will cut output.
Three-month aluminum settled at an official price of $1,967.50 per tonne, compared with an opening price of $1,942.50 per tonne. The contract traded at an intraday high of $1,979.25 per tonne and dipped as low as $1,942 per tonne.
"Aluminum continues to lead the charge, with continued CTA (commodity trading advisor) buying activity helping prices back above $1,970 heading into Wednesday afternoon. Aluminum turnover has been very solid, even outpacing copper," a Standard Bank analyst said in a note.
Also contributing to the light metals strength is news that Chalco will temporarily cut production by 380,000 tonnes per year in response to market conditions.
"Aluminum capacity in China continues to be trimmed back," the analyst said. "The cuts occur against the backdrop of further capacity closures in several southern Chinese provinces, capacity closures by Alcoa (Inc.) and a 4-percent production cut by (United Co. Rusal) during Q1 2013."
Three-month copper settled June 5 at $7,460.50 per tonne, compared with $7,447.75 per tonne at the open. The red metal found its high at $7,480 per tonne and traded as low as $7,398 per tonne.
A version of this article was first published in AMM sister publication Metal Bulletin.