Aluminum hovers near 6-week low

Aluminum prices have slipped to nearly a weekly low in recent days as the market is at risk of overproduction amid rising supplies and exports from the world's largest producer, China, as well as lower production costs and higher inventories.

Aluminum exports from China have increased in recent months. The country exported 460,000 tons of unprocessed aluminum and aluminum products in May, up from 430,000 tons in April.

Data from the International Aluminum Institute showed that China's aluminum production last year accounted for 55 percent of the world's total, with an estimated 59 million tonnes. And its release has been growing since March.

Electricity generated by burning coal accounts for 30-40% of the cost of aluminum production in China. Lower coal prices lower production costs and increase profitability.

Aluminum prices reached $ 1,981 in March, the highest since December 2014. The rise came on expectations of a drop in shipments from China, where environmental repression could mean a cut in production in the winter months starting in November.