METALS-Aluminium set for big weekly fall as prices whipsaw
Updates throughout, adds LONDON dateline
LONDON, March 11 (Reuters) - Aluminium rose on Friday but was down 10% this week amid heightened market volatility, after uncertainty about exports from Russia pushed prices to record highs.
Russia produces around 6% of the world's aluminium and is a major producer of copper and nickel, precious metals, energy and crops.
Since Moscow sent troops into Ukraine on Feb. 24, many banks and shippers stopped handling Russian commodities, creating a supply shock that sent prices sharply higher.
Benchmark aluminium CMAL3 on the London Metal Exchange (LME) was up 1.4% at $3,474 a tonne 1124 GMT.
The metal, used in transport, construction and packaging, whipsawed from around $3,300 on Feb. 23 to $4,073.50 on Monday and back to $3,300 on Wednesday.
Aluminium is still up nearly 25% this year after rising 42% in 2021, when a supply deficit began to form.
"There is across commodities markets some confusion about where prices should be," said WisdomTree analyst Nitesh Shah. "If this (war in Ukraine) is a protracted conflict, a lot more supply will probably get hurt."
NICKEL: Trading on the LME remained suspended after a price surge earlier this week.
SUPPLY: The jump in energy and coal prices could constrain output of energy-intensive aluminium smelters in Europe and Asia, analysts at ANZ said, worsening supply shortages.
INVENTORIES: Stocks of aluminium in LME-registered warehouses have fallen to 755,950 tonnes from almost 2 million tonnes a year earlier. MALSTX-TOTAL
PREMIUMS: Undersupply has pushed duty-paid physical premiums over the LME price sharply higher to $506 a tonne in Europe EPDc1 and $847 a tonne in the United States AUPc1.
RUSSIA: Russian forces bearing down on Kyiv appear to be regrouping at northwest of the Ukrainian capital.
MARKETS: Equities markets rose as investors clung to hopes the global economy would continue to grow. MKTS/GLOB
CHINA: Copper stocks in Shanghai Futures Exchange (ShFE) warehouses fell this week and Chinese copper output rose in February.
NICKEL: About 12 mines in the Philippines should begin commercial operations this year, mostly nickel projects, the local industry regulator said.
METALS PRICES: LME copper CMCU3 was up 1.2% at $10,233 a tonne but down around 4% this week.
Zinc CMZN3 fell 0.7% to $3,835 as was about 5% down this week.
Lead CMPB3 was up 0.9% at $2,377 but set for a 4% weekly loss.
Tin CMSN3 fell 0.3% to $43,600 and was down 8% this week.
(Reporting by Peter Hobson Additional reporting by Eileen Soreng in Bengaluru Editing by Vinay Dwivedi)
((Peter.Hobson@thomsonreuters.com; +44 207 542 0083;))
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