A view shows aluminum bars produced at the Krasnoyarsk Aluminium Smelter (KrAZ) of Rusal in the Siberian city of Krasnoyarsk, Russia July 17, 2024. REUTERS
(Reuters) – Aluminium prices rose on Monday due to supply risks after U.S. President Donald Trump said he was set to impose new 25% tariffs on all steel and aluminium imports.
Three-month aluminium on the London Metal Exchange (LME) rose 0.3% to $2,635 a metric ton, by 0318 GMT.
The aluminium contract on the Shanghai Futures Exchange (SHFE) was 0.2% higher at 20,530 yuan ($2,809.71)a ton.
On Sunday, Trump said he would announce new 25% tariffs on all steel and aluminium imports into the U.S., which would come on top of existing metals duties, in another major escalation of his trade policy overhaul.
“At the moment we are seeing signs that maybe this could put some upward pressure in the short term on prices just because of the supply element,” said Kyle Rodda, senior financial markets analyst at Capital.com.
“One of the impacts of these tariffs is depressed global economic activity.”
Trump also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
Meanwhile, Federal Reserve officials on Friday said the U.S. job market is solid and noted the lack of clarity over how Trump’s policies will affect economic growth and still-elevated inflation, underscoring their no-rush approach to interest rate cuts.
LME copper fell 0.2% to $9,393.5, zinc was up 0.2% at $2,844.5, tin eased 0.2% to $31,040, lead fell 0.2% to $1,989.5, and nickel fell 0.1% to $15,740.
SHFE copper gained 0.6% to 77,190 yuan, nickel fell 0.2% to 126,870 yuan, zinc was steady at 23,805 yuan, lead gained 0.4% to 17,165 yuan and tin <SSNcv1gained 0.3% to 258,880 yuan.
($1 = 7.3068 Chinese yuan renminbi)
Reporting by Anushree Mukherjee and Anjana Anil in Bengaluru; Editing by Eileen Soreng
