Aluminum inventories increase 26600 tonnes in LME

 

 

Shanghai weekly inventories were up by a higher percentage to 179443 tonnes up 40430 tonnes from 139013 tonnes on November 11th 2011.

 

 

Planned new capacity in northwest China is helping the Aluminum production in a big way though the intake is lower these supplies are finding their way in Aluminum stocks.

 

 

The markets are of the view that if the prices of Aluminum continue to fall further the excess production will be curbed. Shanghai Aluminum was trading at CNY 16000 per tonne. It is estimated that around 30% of the Aluminum producers are losing money producing at these units. If the prices fall further the expectations of units shutting down the production is on the cards.