METALS-Shanghai aluminium up on supply woes; London at 3-year high

By Mai Nguyen

July 30 (Reuters) - Shanghai aluminium prices rose on Friday, hovering near a 11-year high, on supply worries in China amid a fresh round of electricity restrictions in major producing province of Yunnan.

The most-traded September aluminium contract on the Shanghai Futures Exchange closed up 2.6% at 20,085 yuan ($3,108.94) a tonne, near a January 2010 high of 20,530 per tonne.

Three-month aluminium on the London Metal Exchange rose as much as 0.5% to $2,605.50 a tonne, its highest since April 2018 and on track for its sixth straight monthly gain.

"(Prices are rising) because of Yunnan's electricity control," said a Singapore-based trader.

Aluminium producers in Yunnan province received a notice from local authorities to restrict their power consumption, with aluminium smelter Yunnan Shenho - a unit of China's Henan Shenhuo Coal & Power Co Ltd - set to miss its 2021 output target due to the power cut.

FUNDAMENTALS

* Aluminium inventories in ShFE warehouses were last registered at 266,666 tonnes, hovering near their lowest level since Feb. 5. Stockpiles of the metal in LME warehouses have dropped by nearly a third since March to 1.4 million tonnes.

* The premium of LME cash aluminium over the three-month contract stretched to $17.65 a tonne, the biggest since December 2019, indicating tightening nearby supplies.

* LME copper fell 0.4% to $9,786 a tonne at 0706 GMT, nickel shed 0.5% to $19,740 a tonne, ShFE copper edged up 0.4% to 71,820 yuan a tonne and ShFE zinc rose 0.9% to 22,495 yuan a tonne.

* Workers at Chile's Andina copper mine operated by state-owned Codelco turned down the firm's offer for a new collective contract on Thursday, paving the way for a potential strike at the facility, the union told Reuters.

* For the top stories in metals and other news, click or

($1 = 6.4604 yuan)

(Reporting by Mai Nguyen in Hanoi; editing by Amy Caren Daniel and Jason Neely)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.