April 11, 2018 / 4:43 AM / 9 days ago

METALS-London aluminium climbs for 6th session after LME suspends Rusal metal

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, April 11 (Reuters) - London aluminium prices
climbed as much as 2 percent on Wednesday, trading higher for a
sixth straight session as the fallout from U.S. sanctions on
Russian producer United Company Rusal continues to
roil metals markets. 
    The London Metal Exchange (LME) will suspend Rusal's
aluminium from its list of approved brands from April 17 after
some members raised concerns about settling LME contracts with
sanctioned companies, LME Chief Executive Matt Chamberlain told
Reuters.
    "While the full implications (of the Rusal sanctions) are
still unknown, there is still a significant risk to global
supply," ANZ wrote in a note, adding that the sanctions came on
top of 10 percent tariffs on U.S. aluminium imports, which had
already tightened the market in the United States and raised
premiums.    
        
    FUNDAMENTALS
    * LME ALUMINIUM: Three-month aluminium on the LME
was trading up 1.5 percent at $2,234.50 a tonne at 0708 GMT,
having touched a 10-week high of $2,245 minutes earlier.
    * SHFE ALUMINIUM: The most-traded June aluminium contract on
the Shanghai Futures Exchange (ShFE) closed up 0.2
percent at 14,375 yuan ($2,288.65) a tonne, having earlier
touched 14,475 yuan, its highest since March 6.    
    * RUSAL: Rusal said on Wednesday that two of its
non-executive directors resigned after the company's inclusion
on a new list of U.S. sanctions.
    * RUSAL BONDS: Rusal's dollar bonds slumped to record lows
and two major customers said they were reviewing their
contracts.
    * RIO: Rio Tinto Plc, is reviewing its
dealings with Rusal to ensure compliance with U.S. sanctions, a
top executive said on Tuesday, but added it was too soon to
discuss the future of its Australian venture with Rusal.

    * PREMIUMS: Physical premiums for aluminium deliveries to
mainland China from ShFE bonded warehouses rose by $5 to $135 a
tonne <0#BASEBW-SHMET> on Wednesday. In the United States, the
Comex aluminium premium jumped to 20.7 cents a pound
($456 a tonne) from 18.4 cents on Friday, the highest in three
years. 
    * TRADE FLOWS: Traders and warehouse sources said the high
premium was attracting aluminium to the United States from
tariff-exempt countries that had been stored in Asia, tightening
Asian supply.
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
    * Asian stocks rose modestly on Wednesday but pared early
gains as caution again crept into markets over strained
U.S-China trade ties and escalating tensions in
Syria.        
    PRICES    
 BASE METALS PRICES                           0708 GMT
 Three month LME copper                           6935
 Most active ShFE copper                         50930
 Three month LME aluminium                      2234.5
 Most active ShFE aluminium                      14370
 Three month LME zinc                             3256
 Most active ShFE zinc                           24580
 Three month LME lead                           2391.5
 Most active ShFE lead                           18485
 Three month LME nickel                          13750
 Most active ShFE nickel                        101650
 Three month LME tin                             21030
 Most active ShFE tin                           144210
                                                      
 BASE METALS ARBITRAGE                                
 LME/SHFE COPPER               LMESHFCUc3       320.15
 LME/SHFE ALUMINIUM            LMESHFALc3     -1908.39
 LME/SHFE ZINC                 LMESHFZNc3       271.36
 LME/SHFE LEAD                 LMESHFPBc3        63.12
 LME/SHFE NICKEL               LMESHFNIc3      -623.28
 ($1 = 6.2810 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; additional reporting by Melanie Burton
in MELBOURNE; editing by Richard Pullin and Amrutha Gayathri)
  
 
 
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