LONDON: Aluminium prices sank to a one-week low on Friday after a report the U.S. may trim some tariffs and other industrial metals also lost ground on profit-taking and risk-off sentiment.
Benchmark three-month aluminium on the London Metal Exchange gave up 1.9% to $3,040.50 a metric ton by 1020 GMT, its weakest since February 6.
On Thursday, it touched a nearly two-week peak on supply concerns.
“Macro-driven risk-off sentiment and broad profit-taking continue to unwind the strong early-year rally,” said Ewa Manthey, commodities strategist at ING in London.
“News that the U.S. may roll back parts of its aluminium tariff regime has introduced an extra layer of uncertainty for trade flows and pricing.”
Copper prices higher, aluminium gains on supply worries
Trump reported to be considering easing tariffs
U.S. President Donald Trump is considering rolling back some tariffs on steel and aluminium goods because his officials believe the tariffs are hurting consumers, the Financial Times reported on Friday.
Trump hit steel and aluminium imports with tariffs of up to 50% in June last year.
The most-active aluminium contract on the Shanghai Futures Exchange declined 1.8% to close daytime trading at 23,195 yuan ($3,355.27) a ton.
“Trading has also slowed ahead of the Chinese New Year, adding to the weaker tone across the complex,” Manthey added.
SHFE will be closed from February 15 for China’s nine-day Lunar New Year break and reopen on February 24.
LME copper fell 0.5% to $12,810.50 a ton, moving further away from its record peak of $14,527.50 hit on January 29, as physical demand declines ahead of the break.
The amount consumers pay for spot copper over the SHFE copper price flipped back into a 60 yuan per ton discount on Thursday from a premium last week, highlighting the softening demand.
Among other metals, LME zinc dropped 1.7% to $3,316 a ton, nickel shed 2.3% to $17,030, lead fell 0.6% to $1,966 and tin gave up 2.9% to $48,250.
American Dollar Exchange Rate