II:Aluminium Inventories Increase 26600 Tons In LME
Aluminium inventories in LME increased by 26600 tons in LME till the week ending 18 Nov. The inventories now stand at 4560275 tons as against 4533675 tons. Shanghai weekly inventories were up by a higher percentage to 179443 tons, up 40430 tons from 139013 tons on 11 Nov 2011. Planned new capacity in northwest China is helping the Aluminium production in a big way, though the intake is lower these supplies are finding their way in Aluminium stocks.
The markets are of the view that if the prices of Aluminium continue to fall further the excess production will be curbed. Shanghai Aluminium was trading at 16000 yuan per ton. It is estimated that around 30% of the Aluminium 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.
