US metals and oil roiled as traders weigh risk of tariffs
Metals including copper, silver and platinum have seen a sharp price dislocation between London and New York.
Aluminum rose as much as 1.4%, with the European Union considering curbs on imports from Russia and Chinese production growth expected to slow.
The potential restrictions, along with measures against other commodities, could be gradual and the scope is yet to be determined, according to people familiar with the matter.
Russian aluminum shipments to Europe have already fallen due to widespread self-sanctioning by manufacturers since the full-scale invasion of Ukraine, and a reordering of global supply chains. More has been shipped to China instead, with imports doubling from 2022 levels.
The additional impact on trade volumes being re-routed “could be very limited” given the market has already adjusted, said Gao Yin, an analyst at Shuohe Asset Management Co. “The market isn’t in urgent need of Russian aluminum.”
In China, the aluminum industry is approaching an inflection point this year as limits on capacity are set to slow production growth, leaving less metal available for export and supporting prices, according to researcher Shanghai Metals Market. The country is the world’s largest supplier.
Futures were up 1.4% to $2,595 a ton at 4:17 p.m. in London. Other metals on the London Metal Exchange were lower, with zinc and copper little changed while lead dropped 1.1% after LME inventories jumped.
Read More: Kremlin says EU sanctions on Russian aluminum would risk destabilizing a ‘fragile’ global market
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