Copper and aluminium trade in narrow ranges ahead of possible U.S.-Iran talks

LONDON: Copper and aluminium were little changed on Friday as caution prevailed ahead of possible U.S.-Iran peace talks at the weekend.

Benchmark three-month copper on the London Metal Exchange (LME) was down 0.2% at $13,237.50 a metric ton by 1017 GMT. Having touched its highest since March 2 at $13,392.50 on Wednesday, the metal is up 3% this week.

Aluminium was down 0.2% at $3,635.50 a ton after hitting a four-year high of $3,672 in the previous session on expectations that the global aluminium market will face a supply deficit this year because of the Iran war.

U.S. President Donald Trump said the next meeting between the United States and Iran could take place over the weekend, adding that he believed the U.S. was “very close to making a deal with Iran”.

A Pakistani security source told Reuters that Iran would open the Strait of Hormuz only if a permanent ceasefire is reached and there are United Nations guarantees that the U.S. and Israel will not attack again in the future.

Strong prices for copper, aluminium and other metals drove the LME’s index of six base metals contracts to a record high on Thursday on supply worries and investment from the wider financial system. Global equities were trading near record highs on Friday on the hopes for a peace deal.

Nickel rose 1.8% to $18,555 a ton after hitting $18,640 for its highest since January 29. Nickel is up 7.7% this week, poised for its strongest weekly growth in two years owing to expectations of reduced supply after Indonesia revised its ore price formula.

Among other LME metals, zinc added 0.2% to $3,428.50 a ton after hitting $3,446.5 for its highest since February 12. Lead gained 0.7% to $1,965 and tin was steady at $49,905.