(Updates prices, adds details)
HANOI, April 14 (Reuters) - Shanghai aluminium rose to a near 10-year high on Wednesday, while London prices also advanced on speculation that top producer China would limit output to meet its green targets.
The most-traded May aluminium contract on the Shanghai Futures Exchange rose as much as 2.7% to 18,045 yuan ($2,760.53) a tonne, its highest since August 2011, before retreating to closed up 1.8% at 17,895 yuan a tonne at 0716 GMT.
Three-month aluminium on the London Metal Exchange rose 0.9% to $2,313.50 a tonne, having hit $2,314 a tonne, its highest since June 2018, earlier in the session.
Traders said there were market talks that China’s Xinjiang region will limit output of aluminium, an energy intensive industry, as the country strives to curb pollution.
However, a Xinjiang metals association official said it was not true that the region was implementing the same curbs as Inner Mongolia.
“Aluminium was supported by fears of further supply constraints in China. Recent curbs on energy intensive industry has seen the expansion of aluminium capacity in China curbed,” said ANZ in a note.
China’s research house Antaike expected the Chinese aluminium market to be in a 100,000-tonne deficit this year.
Combined aluminium inventories in LME and ShFE warehouses have fallen in recent sessions but the current stockpiles of 2.23 million tonnes were still 43% higher than the beginning of the year. MALSTX-TOTALAL-STX-SGH
* Russian metals producer Nornickel will boost output of nickel products at its Harjavalta plant in Finland, betting on an expanding market for electric vehicle battery materials.
* LME copper rose 0.5% to $8,944.50 a tonne while zinc advanced 0.4% to $2,796 a tonne. ShFE copper increased 0.5% to 66,190 yuan a tonne while nickel fell 0.4% to 121,520 yuan a tonne.
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$1 = 6.5368 yuan Reporting by Mai Nguyen; Additional reporting by Tom Daly; Editing by Rashmi Aich and Krishna Chandra Eluri