Aluminum Rises From Four-Month Low With Focus on China Curbs

(Bloomberg) — Aluminum rose from its lowest level since March as traders weighed the possibility that China’s new emissions reduction plan for domestic smelters will trigger capacity cuts.

Futures advanced as much as 1.1% on the London Metal Exchange, snapping a seven-session streak of declines, also the longest since March. 

China will support aluminum producers to use more renewable energy and no longer approve any new coal-fired power generators for smelting, according to a government plan issued Tuesday. The strategy also requires capacity to be below baseline energy-efficiency levels, meaning some plants will need to undergo technical upgrades or be phased out by the end of 2025.