SHANGHAI: 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 US President Donald Trump.
Three-month aluminium on the London Metal Exchange (LME) was up 0.1% at $2,624 a metric ton, as of 0405 GMT. Australia’s trade minister Don Farrell said the country had increased aluminium supply to the US with Washington’s approval.
Australia, the world’s sixth-largest aluminium producer, accounted for 1% of steel imports into the US and 2% of its aluminium imports.
Copper prices also traded in a narrow range, with the LME benchmark copper edging up 0.2% to $9,470 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.
Aluminium, copper retreat on fears that tariffs will hit growth
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 was up 0.1% to $2,864, tin was down 0.3% at $31,480, lead added 0.1% to $1,975 and nickel edged 0.1% lower to $15,405. The aluminium contract on the Shanghai Futures Exchange (SHFE) was down 0.2% to 20,540 yuan ($2,818.45)a ton.
SHFE copper rose 0.8% to 77,370 yuan, nickel was down 0.2% to 124,120 yuan, zinc climbed 0.4% to 23,745 yuan, lead added 0.2% to 17,125 yuan and tin was up 0.1% to 257,340 yuan.
Comments
Comments are closed for this article.