Aluminium prices rose towards a six-year high on Thursday, the latest commodity to be buoyed by China’s efforts to cut supply to curb pollution.
The price for a tonne of aluminium on the Shanghai Futures Exchange climbed as much as 3.2 per cent to Rmb16,650 ($2,500) a tonne, putting the contract on track for the highest close since 2011. Steelmaking ingredient iron ore has risen to its highest level in five months, while zinc prices are at their highest level in 10 years.
China has laid out plans to cut pollution in its northern provinces starting in October, just as the ruling Communist Party is set to hold its 19th party congress, which will announce a new generation of leaders. That is raising hopes that ordered cuts to aluminium and steel output will be enforced, supporting prices.