KALU - Aluminum soars to 13-year high as China power shortages rise

Alcoa (NYSE:AA) +3% pre-market as aluminum prices jump to their highest since 2008 as production in China, already trimmed by the government anti-pollution efforts, is further curbed by power shortages. Reuters reports benchmark aluminum on the London Metal Exchange (LMAHDS03:COM) rose more than 2% overnight to as high as $3,044/metric ton, the highest since July 2008 and up more than 50% YTD. Other relevant tickers include CENX, ARNC, CSTM, KALU, ACH, JJU LME prices of $3,300-$3,400 are possible by year-end but demand could slacken if the global economy continues to weaken, derailing the rally, WisdomTree analyst Nitesh Shah tells Reuters. Macquarie analysts estimate supply disruption will cut China's aluminum production by 1.5M mt this year, leading to a 1M-ton deficit in the 65M-ton global market. Last month's coup in Guinea, a major producer of bauxite, also has hit aluminum supply.

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Aluminum soars to 13-year high as China power shortages rise