London aluminum prices hit a near four-month high on Tuesday boosted by dwindling inventories, while coronavirus curbs in the Chinese city of Baise has hit transportation of alumina raising concerns over a potential cut in production.
Three-month aluminum on the London Metal Exchange was up 1.2 percent at $3,170 a ton, after hitting a peak since Oct. 19 at $3,172 earlier.
The most-traded March aluminum contract on the Shanghai Futures Exchange rose 1.4 percent to 22,465 yuan ($3,533.90) a ton. Earlier in the session, the contract hit 22,615 yuan, a peak since Oct. 22 last year.
Aluminum stocks in LME approved warehouses fell to 768,250 tons, their lowest level since February 2007.
The premium of LME cash aluminum over the three-month contract has risen to $40 a ton, highest since July 2018, indicating tightening nearby supplies.
Antaike, a government-backed consultancy, said in a statement on Monday that part of local alumina production – a raw material used to make aluminum – has been affected by the COVID-19-related restrictions in Baise in the Guangxi region and more producers saw transportation disruptions.
