(Updates prices, adds details)
By Mai Nguyen
SINGAPORE, Aug 13 (Reuters) - Shanghai aluminium rallied to its highest in more than two months on Tuesday amid supply concerns at a top producer due to a typhoon, even as it denied any impact on production.
China Hongqiao Group, the world’s top aluminium producer, said it was operating as normal after Typhon Lekima lashed its home province of Shandong during the weekend and caused severe flooding.
“The facilities are not damaged by the typhoon. There was flooding outside the factories but no actual facilities damage,” Honqgiao said.
Shanghai Futures Exchange (ShFE) most-traded aluminium contract hit its highest since May 29 of 14,285 yuan ($2,022.02) a tonne in early Asian trading hours, before easing to close at 14,200 yuan a tonne following Hongqiao’s comments.
Three-month aluminium on the London Metal Exchange (LME) was almost unchanged by 0714 GMT. It has lost 4.1% so far this year.
“Chinese aluminium deficit is very small. Demand growth has definitely been downgraded mainly due to the auto industry,” said CRU analyst Jackie Wang.
Wang said aluminium deficit in China is currently at around 170,000 tonnes, adding that the deficit might close and even become a surplus by the end of this year if demand remains weak.
* ALUMINIUM STOCKS: Aluminium inventories in warehouses tracked by ShFE AL-STX-SGH are hovering at their lowest since April 2017, while LME stockpiles have improved recently but are still down 22% from the beginning of the year MALSTX-TOTAL.
* ALUMINIUM DEFICIT: A July Reuters poll showed a forecast for a global aluminium deficit of 550,000 tonnes this year, down from an earlier estimate of 868,240 tonnes.
* LEAD: LME lead dropped 1.1% and ShFE lead fell 1.5%, shrugging off some gains in the previous session on a shut down of a Nyrstar plant. Traders said weak Chinese demand continued to weigh on lead prices.
* NYRSTAR: Belgium’s Nyrstar said on Monday it had shut down its zinc-lead smelter furnace in Port Pirie, Australia, after an incident, the second disruption at the plant this year.
* PRICES: LME copper rose 0.1%, nickel advanced 0.6% while zinc edged up 0.1%. Shanghai copper decreased 0.3%, nickel increased 0.9% and zinc rose 1.3%.
* YUAN: China’s yuan is at an appropriate level currently and its fluctuations will not necessarily cause disorderly capital flows, a senior official said.
* INDONESIA: Indonesia aims to speed up enforcement of a ban on mineral ore exports that is currently due to come into force in 2020, news website Detik.com quoted coordinating minister for maritime affairs Luhut Pandjaitan as saying on Monday.
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Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 7.0647 Chinese yuan renminbi)
Reporting by Mai Nguyen; editing by Richard Pullin and Rashmi Aich