HANOI- Aluminum prices fell to their lowest in more than three months on Thursday, while Shanghai nickel dropped to its lowest in over four months, pressured by rising output in major producing countries.
Three-month aluminum on the London Metal Exchange was down 0.2 percent to $2,397.50 per metric ton, after hitting its lowest since April 3 at $2,395 earlier in the session.
The most-traded August aluminum contract on the Shanghai Futures Exchange shed 0.8 percent to 19,625 yuan ($2,703.39) a ton. The contract had earlier touched its lowest since March 28 at 19,590 yuan.
China’s production of primary aluminum in June rose to the highest level since at least 2014, and output in the first half grew 7 percent as producers ramped up production fueled by higher profit margins thanks to a recent surge in prices.
LME aluminum surged nearly 30 percent in three months towards the end of May, when prices reached a two-year high.
The discount of LME cash aluminum to the three-month contract was at $58.54 a ton on Wednesday, hovering near the 24-year high of $65.07, suggesting abundant near-term supply.
SHFE aluminum inventories rose to 262,200 tons, the highest since April 2023.
