April 24, 2018 / 4:14 AM / a month ago

METALS-Aluminium prices extend fall after U.S. reprieve for Rusal

 (Adds analyst comment and updates prices)
    BEIJING, April 24 (Reuters) - Aluminium prices continued to
retrace recent gains on Tuesday after Washington gave U.S.
customers of United Company Rusal more time to comply
with sanctions on the Russian producer. 
    The sanctions, announced on April 6, last week drove prices
for the metal to their highest since mid-2011 on fears that the
global market could face shortages.
    But the U.S. Treasury Department on Monday gave Americans
until Oct. 23, instead of June 5, to wind down business with
Rusal and said it would consider lifting the sanctions if
Rusal's major shareholder, Russian tycoon Oleg Deripaska, ceded
control of the company.
    "The deadline extension will allow for a deal to be crafted
for Rusal and allow for an orderly transition in the market,"
consultancy Wood Mackenzie said in a note late on Monday.
    "We expect near-term correction and volatility in LME
prices" and global premiums, it added. The U.S aluminium premium
on Comex was at a three-year high of 21.5 cents per
pound ($474 a tonne) on Monday.
        
    FUNDAMENTALS
    * LME ALUMINIUM: Three-month aluminium on the London Metal
Exchange was down 3.2 percent at $2,222.50 a tonne by
0704 GMT. It touched a low of $2,213 a tonne, its lowest since
April 12, and slid by 7.1 percent on Monday in its biggest
one-day drop in eight years.
    * SHFE ALUMINIUM: The most-traded June aluminium contract on
the Shanghai Futures Exchange closed down 3.7 percent
at 14,385 yuan ($2,278.05) a tonne. It fell by as much as 4.8
percent overnight, its biggest daily dip since March 15, 2011.
    * NICKEL: London nickel, which hit a three-year high
on April 19 on fears the sanctions might be extended, edged up
0.1 percent after closing down 3.8 percent on Monday. Shanghai
nickel closed down 1.2 percent on Tuesday.
    * INSIGHT: In December, as news reports emerged about
potential new U.S. sanctions against Russia, aluminium magnate
Deripaska instructed advisers to draw up contingency plans,
according to people close to the businessman and his firms.

    * NICKEL: The Philippines is planning to limit the amount of
land that miners can develop at any one time to boost
environmental rehabilitation, a move that miners say may cut
output of nickel ore in last year's top supplier to China.

    * CHILE: Chilean industrial conglomerate Empresas Copec
SA said on Monday it had reached an agreement with
Peru's Minsur S.A. to buy a 40-percent stake in a
holding company that owns a Peruvian copper mine project for
$168.5 million.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian stocks steadied after hitting two-week lows on
Tuesday as investors paused for breathe following a heavy
sell-off in recent sessions and waited to see if the dollar's
rally was sustainable.    
        
    PRICES
 BASE METALS PRICES                          0709 GMT
 Three month LME copper                          6953
 Most active ShFE copper                        51530
 Three month LME aluminium                       2225
 Most active ShFE aluminium                     14380
 Three month LME zinc                            3237
 Most active ShFE zinc                          24430
 Three month LME lead                          2328.5
 Most active ShFE lead                          18365
 Three month LME nickel                         14265
 Most active ShFE nickel                       103340
 Three month LME tin                            21080
 Most active ShFE tin                          146290
                                                     
 BASE METALS ARBITRAGE                               
 LME/SHFE COPPER               LMESHFCUc3      325.56
 LME/SHFE ALUMINIUM            LMESHFALc3    -1958.62
 LME/SHFE ZINC                 LMESHFZNc3      100.23
 LME/SHFE LEAD                 LMESHFPBc3      466.82
 LME/SHFE NICKEL               LMESHFNIc3    -3032.13
   

    
 (Reporting by Tom Daly, Editing by Richard Pullin and Sherry
Jacob-Phillips)
  
 
 
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