BENGALURU- London aluminum edged higher on Thursday after the European Union proposed banning imports of the metal from Russia in a fresh package of sanctions over its invasion of Ukraine.
Three-month aluminum on the London Metal Exchange (LME) gained 0.3 percent to $2,626 a metric ton.
The EU ban would include aluminum alloys and have a one-year phase-in period, the proposal said, with “necessary” imports of 275,000 metric tons exempt for this period.
The 27-member bloc imported nearly 330,000 tons of Russian primary aluminum and alloys for the January-November period last year, according to Trade Data Monitor.
Aluminum led base metals higher after the EU proposal, said Daniel Hynes, senior commodity strategist and ANZ bank.
“The threat of further sanctions on Russia aluminum has seen an increase amount of the metal head to China,” Hynes said.
Benchmark copper was steady at $9,072, after hitting its lowest level since Jan. 8 on Wednesday.
The dollar index fell 0.1 percent, from a one-week high hit in the previous session as the Federal Reserve pressed the pause button on its easing cycle overnight.
A softer dollar makes greenback-priced commodities cheaper for holders of other currencies.