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Aluminium rises on EU sanctions danger for Russian metal

Aluminium prices in London rose on Wednesday, driven by possible tightening of supply to the European Union if the bloc prohibits imports of the metal from Russia.

Three-month aluminium on the London Metal Exchange ( LME) was up 0.7% at $2,578 per metric load in official open-outcry trading.

Reuters reported on Tuesday that the European Commission intends to propose a restriction on imports of Russian main aluminium in its 16th plan of sanctions versus Russia over its war in Ukraine.

The Kremlin said on Wednesday that the relocation would risk destabilising an already vulnerable international market.

The contract struck $2,602, its highest because Dec. 16, on Tuesday before pulling back as it encountered producer deals.

Materials from Russia account for just 6% of the EU's import needs in primary aluminium, said Alastair Munro, senior base metals strategist at broker Marex.

So it is not that big and you understand trade routes will be moved, he added.

On The Other Hand, U.S. Comex copper futures continued trading at a. big premium to the LME copper benchmark after the U.S. contract's sharp development with the prices in of expected import. tariffs guaranteed by U.S. President-elect Donald Trump.

LME copper lost 0.2% to $9,139 a heap in authorities. activity while U.S. Comex copper futures got 0.3% to. $ 4.354 per lb, or $9,598.9 a heap. That represents a premium of. $ 460 a ton over LME copper, compared with about $500 last week.

A number of U.S. commodity costs are successfully pricing in. a 45-55% opportunity of a 10% broad tariff or 10% important. mineral-specific tariff, Citi said in a note.

In other LME metals, lead was down 1.5% at $1,937 a. heap as stocks in LME-registered warehouses << 0 #MPBSTX- LOC> > rose. to their greatest since December at 239,000 heaps after shipments. of 20,800 loads to storage in Singapore.

LME zinc lost 1.2% to $2,828 a heap, tin fell. 1.8% to $29,250 and nickel was down 0.4% at $15,890.

(source: Reuters)