METALS-Aluminium prices rangebound as trade war risks assessed

Reuters
02-13
METALS-Aluminium prices rangebound as trade war risks assessed

Updates prices

SHANGHAI, Feb 13 (Reuters) - Aluminium prices were rangebound on Thursday as traders gauged the potential risks of a global trade war following the imposition of 25% tariffs on steel and aluminium imports by U.S. President Donald Trump.

Three-month aluminium CMAL3 on the London Metal Exchange $(LME.UK)$ was down 0.1% at $2,619 a metric ton, as of 0807 GMT.

Australia's trade minister Don Farrell said the country had increased aluminium supply to the U.S. with Washington's approval.

Australia, the world's sixth-largest aluminium producer, accounted for 1% of steel imports into the U.S. and 2% of its aluminium imports.

Copper prices also traded in a narrow range, with the LME benchmark copper CMCU3 edging up 0.1% to $9,467 a metric ton.

"Following Trump's announcement of 25% tariffs on aluminium and steel, many traders believe copper is also in his sights. Signs of tightness also boosted sentiment," ANZ Research said in a note.

While Trump did not impose tariffs on copper, he did threaten duties last week without providing further details.

Treatment charges - the fees paid by miners to smelters for converting raw materials into metal - have been declining, indicating a shortage of material.

The Fastmarkets copper TC/RC (treatment charge/refining charge) index has hit record lows in recent weeks and was at minus $12.50 a ton and minus 1.25 cents per lb on Wednesday, compared with a TC of about plus $20 a year ago.

Among other metals, zinc CMZN3 was flat at $2,862, tin CMSN3 was up 0.2% at $31,635, lead CMPB3 added 0.3% to $1,978 and nickel CMNI3 edged 0.3% higher to $15,470.

The aluminium contract on the Shanghai Futures Exchange (SHFE) SAFcv1 was up 1.0% to 20,550 yuan ($2,818.45) a ton.

SHFE copper SCFcv1 rose 1.0% to 77,560 yuan, nickel SNIcv1 was down 0.1% to 124,280 yuan, zinc SZNcv1 climbed 0.5% to 23,775 yuan, lead SPBcv1 added 0.3% to 17,145 yuan and tin SSNcv1 was up 0.4% to 257,990 yuan.

($1 = 7.2877 Chinese yuan renminbi)

(Reporting by Violet Li and Mei Mei Chu; Editing by Sherry Jacob-Phillips and Eileen Soreng)

((Violet.Li@thomsonreuters.com;))

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