April 17, 2018 / 1:57 AM / in 3 months

METALS-Shanghai aluminium rises to 3-mth peak, tracks LME on supply woes

    MANILA, April 17 (Reuters) - Shanghai aluminium futures hit
their strongest in almost three months on Tuesday amid supply
worries after Rio Tinto declared force majeure on some customer
contracts after the United States imposed sanctions on the
firm's Russian partner Rusal.
    The gains in Chinese futures followed another rally in
London prices to their highest since 2011 on Monday. London
aluminium futures have surged more than 18 percent this month.
    
    SHANGHAI ALUMINIUM: The most-traded June aluminium contract
on the Shanghai Futures Exchange rose as far as 14,985
yuan ($2,388) a tonne, its highest since Jan. 29. It was up
nearly 2 percent at 14,840 yuan by 0143 GMT.  
    LME ALUMINIUM: Three-month aluminium on the London Metal
Exchange slipped 0.9 percent to $2,378.50 a tonne. It
peaked at $2,403 on Monday, its strongest level since September,
2011. 
    SUPPLY SHORTAGE: The global aluminium market could face
supply shortages because of U.S. sanctions on Russia and Norsk
Hydro's production cuts in Brazil, Hydro's chief
executive told Reuters.
    RIO TINTO: Apart from saying it would declare force majeure
on certain customer contracts, Rio Tinto also
said last week it was reviewing Rusal's 20 percent
stake in the Queensland Alumina refinery, Rusal's supply and
offtake arrangements, bauxite sales to Rusal's refinery in
Ireland and offtake contracts for alumina.
    GLENCORE: Also last week, a source told Reuters that Swiss
trader Glencore will declare force majeure on some
aluminium supply.
    ALUMINIUM STOCKS: Total stocks of aluminium at LME
warehouses rose 15,100 tonnes to 1.4 million tonnes. Total
stocks are up 9 percent since the start of the Rusal sanctions
on April 6. MAL-STOCKS
    CHINA GDP: Investors are awaiting the release of China's
first-quarter gross domestic product this morning. The world's
second-biggest economy was expected to have expanded by 6.7
percent in the first three months of 2018, after growing 6.8
percent in the fourth quarter.
    COPPER: London copper eased 0.3 percent to $6,893 a
tonne and its Shanghai counterpart rose 0.9 percent to
50,840 yuan.        
    MARKETS: Asia stocks edged higher, tracking Wall Street
gains as the focus shifted to corporate earnings and looming
economic data from China amid signs Western-led strikes on Syria
weren't likely to escalate. The dollar steadied.

        
    DATA AHEAD (GMT)
    0200  China              GDP                        Q1
    0200  China              Industrial output          Mar
    0200  China              Retail sales               Mar
    0200  China              Urban investment           Mar
    0900  Germany            ZEW economic sentiment     Apr
    1230  U.S.               Housing starts             Mar
    1230  U.S.               Building permits           Mar
    1315  U.S.               Industrial production      Mar
        
 BASE METALS PRICES                     0143 GMT
 Three month LME                            6893
 copper                           
 Most active ShFE                          50840
 copper                           
 Three month LME                          2378.5
 aluminium                        
 Most active ShFE                          14840
 aluminium                        
 Three month LME                          3138.5
 zinc                             
 Most active ShFE                          23655
 zinc                             
 Three month LME                            2355
 lead                             
 Most active ShFE                          18120
 lead                             
 Three month LME                           14125
 nickel                           
 Most active ShFE                         103510
 nickel                           
 Three                                     21055
 month LME tin                    
 Most active ShFE                         143960
 tin                              
                                                
 BASE METALS ARBITRAGE                          
 LME/SHFE COPPER     LMESHFCUc3           442.56
 LME/SHFE ALUMINIUM  LMESHFALc3         -2485.57
 LME/SHFE ZINC       LMESHFZNc3           186.04
 LME/SHFE LEAD       LMESHFPBc3            83.76
 LME/SHFE NICKEL     LMESHFNIc3         -1045.93
 ($1 = 6.2757 Chinese yuan)

    
 (Reporting by Manolo Serapio Jr.
Editing by Joseph Radford)
  
 
 
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