SHANGHAI- Aluminum prices were rangebound on Thursday as traders gauged the potential risks of a global trade war following the implementation of a 25 percent tariff on steel and aluminum imports by US President Donald Trump.
Three-month aluminum on the London Metal Exchange (LME) was up 0.2 percent to $2,625.5 a metric ton.
Australia’s trade minister Don Farrell said the country had increased aluminum supply to the US with Washington’s approval.
Australia, the world’s sixth-largest aluminum producer, accounted for 1 percent of steel imports into the US and 2 percent of its aluminum imports.
Copper prices also traded in a narrow range, with the LME benchmark copper edging down 0.1 percent to $9,450 a metric ton.
“Following Trump’s announcement of 25 percent tariffs on aluminum and steel, many traders believe copper is also in his sights. Signs of tightness also boosted sentiment,” ANZ Research said in a note.
While Trump did not impose tariffs on copper, he did threaten duties last week without providing further details.
Treatment charges – the fees paid by miners to smelters for converting raw materials into metal – have been declining, indicating a shortage of material.
