London aluminium edged higher on Thursday after the European Union proposed banning imports of the metal from Russia in a fresh package of sanctions over its invasion of Ukraine.
Three-month aluminium on the London Metal Exchange (LME) gained 0.3% to $2,626 a metric ton by 0215 GMT.
The EU ban would include aluminium alloys and have a one-year phase-in period, the proposal said, with “necessary” imports of 275,000 metric tons exempt for this period.
The 27-member bloc imported nearly 330,000 tons of Russian primary aluminium and alloys for the January-November period last year, according to Trade Data Monitor.
Aluminium led base metals higher after the EU proposal, said Daniel Hynes, senior commodity strategist and ANZ bank.
“The threat of further sanctions on Russia aluminium has seen an increase amount of the metal head to China,” Hynes said.
Benchmark copper was steady at $9,072, after hitting its lowest level since Jan. 8 on Wednesday.
The dollar index fell 0.1%, from a one-week high hit in the previous session as the Federal Reserve pressed the pause button on its easing cycle overnight.
A softer dollar makes greenback-priced commodities cheaper for holders of other currencies. Earlier this week, US President Donald Trump said he would impose tariffs on aluminium, copper and steel.
Echoing this stance, the White House said on Tuesday that Trump still plans to issue tariffs on Canada and Mexico on Saturday while weighing fresh tariffs on China.
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“We continue to expect LME base metal flat price weakness in response to confirmation of wider tariffs,” Citi said in a note.
“We expect Comex pricing of copper versus LME to widen further as tariffs are confirmed and implemented.”
LME zinc rose 0.2% to $2,787.5 a ton, lead climbed 0.4% to $1,967.5 and tin was up 0.3% at $30,195, while nickel shed 0.5% to $15,425.
The Shanghai Futures Exchange is closed for the Lunar New Year holiday.
Source: Brecorder
