LONDON: Aluminium prices sank to a one-week low on Friday after a report the US may trim some tariffs and other industrial metals also lost ground on profit-taking and risk-off sentiment.
Benchmark three-month aluminium on the London Metal Exchange gave up 1.9percent to USD3,040.50 a metric ton by 1020 GMT, its weakest since February 6.
On Thursday, it touched a nearly two-week peak on supply concerns. “Macro-driven risk-off sentiment and broad profit-taking continue to unwind the strong early-year rally,” said Ewa Manthey, commodities strategist at ING in London.
“News that the US may roll back parts of its aluminium tariff regime has introduced an extra layer of uncertainty for trade flows and pricing.”
TRUMP REPORTED TO BE CONSIDERING EASING TARIFFS
US President Donald Trump is considering rolling back some tariffs on steel and aluminium goods because his officials believe the tariffs are hurting consumers, the Financial Times reported on Friday.
Trump hit steel and aluminium imports with tariffs of up to 50 percent in June last year. The most-active aluminium contract on the Shanghai Futures Exchange declined 1.8percent to close daytime trading at 23,195 yuan (USD3,355.27) a ton.
“Trading has also slowed ahead of the Chinese New Year, adding to the weaker tone across the complex,” Manthey added.
SHFE will be closed from February 15 for China’s nine-day Lunar New Year break and reopen on February 24. LME copper fell 0.5percent to USD12,810.50 a ton, moving further away from its record peak of USD14,527.50 hit on January 29, as physical demand declines ahead of the break.
The amount consumers pay for spot copper over the SHFE copper price flipped back into a 60 yuan per ton discount on Thursday from a premium last week, highlighting the softening demand.
Among other metals, LME zinc dropped 1.7percent to USD3,316 a ton, nickel shed 2.3percent to USD17,030, lead fell 0.6percent to USD1,966 and tin gave up 2.9percent to USD48,250.
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