London aluminium prices slipped on Monday as diplomatic efforts to end the Russia-Ukraine conflict were stepped up, even as the fighting intensified.
A Russian delegate to the talks, Leonid Slutsky, was quoted by the RIA news agency as saying they had made significant progress and it was possible the delegations could soon reach draft agreements.
“I don’t think the Russia-Ukraine issue is going away anytime soon, but any kind of talks about returning on the negotiating table will calm nerves,” said Vijay L Bhambwani, head of research at Mumbai-based Equitymaster.
Aluminium set for big weekly fall as prices whipsaw
Three-month aluminium on the London Metal Exchange fell 0.7% to $3,460 a tonne by 0640 GMT. The most-traded April aluminium contract on the Shanghai Futures Exchange eased 0.1% to 21,900 yuan ($3,446.76) a tonne.
Benchmark copper on the LME fell 1.1% to $10,072 a tonne.
“Headlines from the Ukraine crisis continue to dominate sentiment,” said Matt Simpson, senior market analyst at City Index.
Russia produces about 6% of the world’s aluminium, 7% of global nickel and accounts for about 3.5% of copper supplies.
Mounting sanctions on Moscow for invading Ukraine has disrupted air and sea shipments of commodities produced and exported by Russia.
Also on investors’ radar is the US Federal Reserve’s two-day policy meeting beginning on Tuesday, where it is expected to start raising interest rates at the end of the meeting, with inflation running hot.
LME lead ticked 0.1% higher to $2,328.5 a tonne, zinc rose 0.9% to $3,849 and tin fell 1.9% to $43,250.
ShFE copper eased 0.4% to 71,860 yuan a tonne, nickel rose 2% to 204,300 yuan, zinc fell 0.8% to 25,390 yuan, lead inched 0.1% lower to 15,235 yuan and tin fell 2.6% to 332,660 yuan.
China’s refined tin output from major smelters fell 4.9% in February from the previous month, affected by maintenance and holidays, state-backed research house Antaike said on Monday.
LME on Friday defended its decision to suspend nickel trading when prices doubled within hours. It did not provide any further details about reopening.