BEIJING, April 11 (Reuters) - London aluminium prices traded
higher for a sixth straight session on Wednesday, 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 at $2,205 at 0420 GMT, up 0.2 percent from the
previous close but down from a 10-week high of $2,242 hit during
electronic trading on Tuesday after the LME said it would take
steps to keep Rusal aluminium out of its warehouses.
* SHFE ALUMINIUM: The most-traded June aluminium contract on
the Shanghai Futures Exchange (ShFE) was flat at 14,335
yuan ($2,281.88) 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.
