LME price up to two-week highs; Another mega-recycling project announced in China
1. LME prices rally and close near three-week highs amid expectations of continued economic stimulus, Russian export tax and supply-side issues. Still targeting $... per mton or higher before cyclical correction.
2. SHFE aluminum prices consolidating gains near two-month highs.
3. CHINA SCRAP ALERT. 6 MILLION MTON IN 6 MONTHS: China’s Mingtai to build a 700 kmtpy mega-recycling project.
4. CHINA ALUMINUM ANALYSIS. IN EXPANSION MODE: Chinese production remains on track to grow strongly in 2021.
For more details, please see our “China Aluminum Analysis” released earlier today.
5. US WIRE ROD ALERT. STRONG AND WITH UPWARD PRESSURE: Spot EC rod premiums steady at multiyear highs; Deox market the strongest.
6. LME Cash–3M backwardation at the steepest in five weeks amid looming implementation of Russia’s export tax.
More details in full report.