On the London Metal Exchange, the industrial metal increased by 0.6% to reach its highest price since March 7, 2022, at $3,672.50 per metric tonne. As per a report from Bloomberg, in the midst of a national examination of the energy use and emissions of major industries, traders fear that Chinese smelters may be asked to reduce production.
Due to a global scarcity brought on by the Middle East conflict, the country’s aluminium smelters have been operating at maximum capacity. Since the war began in late February, LME prices have increased due to the region’s supplies being cut off by the Strait of Hormuz’s effective blockade.
The report also added that the Chinese authorities are now reportedly moving to rein in that over-production as inventories swell. China’s Ministry of Industry and Information Technology announced in a statement on May 13 that the steel and oil refining sectors will also be targeted.
Before finishing 0.3% down at $13,623.50, LME copper fluctuated between gains and losses. Investors tracked developments in a potential agreement to end the Middle East conflict.
This month, a flurry of betting on the metals required for infrastructure construction associated with the artificial intelligence boom drove the red metal to near record highs.
(Edited by : Juviraj Anchil)
