Three-month copper on the LME was up 1.2% at $ 9,476 a tonne.
China’s production, already held back by a government campaign against pollution, has been further affected by the energy shortage affecting the country.
The Chinese energy futures prices have risen to multi-year all-time highs and India is also facing dizzying power outages and energy costs, forcing a Dutch aluminum producer and a Spanish steelmaker to halt production.
“Aluminum should go up,” said WisdomTree analyst Nitesh Shah. Noted that Prices in the range of $ 3,300 to $ 3,400 were possible by the end of the year, but that demand could decline if the world economy continues to weaken.
Macquarie analysts estimate that supply disruption will reduce Chinese aluminum production by 1.5 million tonnes this year, which will cause a deficit of 1 million tons in the world market of approximately 65 million tons.
Although demand in China is falling, stocks are plentiful and prices are likely to fall to $ 2,200 in 2022, Timothy Weiner of consultancy Harbor Aluminum told an audience in London for LME Week.
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