LONDON- Aluminum prices climbed to the highest in over three years on Friday on concern about reduced supplies in top producer China after more power cuts in the metal-producing province of Yunnan.
Three-month Aluminum on the London Metal Exchange was up 0.1 percent at $2,593 a ton, on track for its sixth straight monthly gain.
Prices pared gains after touching $2,642, the highest since April 2018, after the dollar index reversed and moved into positive territory, making metals priced in the US unit more expensive for buyers using other currencies.
The dollar was bolstered by data showing US consumer spending rose more than expected.
Aluminum producers in Yunnan province received a notice from local authorities this week to restrict their power consumption, and one smelter was set to miss its 2021 output target due to the power cuts.
“In the near term, the power constraints in Yunnan are continuing longer than had been expected. Previously we thought normal production would start to resume in August, but now it will take a bit longer,” said Xiao Fu, head of commodity market strategy at Bank of China International in London.
