Aluminium bucked the general weakness, however, finding support from the news that the United States had announced sanctions against Russia and key Russian firms, including aluminium producer Rusal, at the end of last week.
The most-traded June aluminium contract on the SHFE rose to 14,185 yuan ($2,249) per tonne as of 09.58am Shanghai time, up by 125 yuan from Wednesday’s close.
“[Rusal] is a key supplier of aluminium to the US, and this news sent traders into panic-buying mode,” ANZ Research said on Monday.
“Traders are also worried that the sanctions could impact global trade flows, with the potential impact on non-US aluminium producers still unknown,” the bank added.
SHFE aluminium inventories registered a slight decline of 154 tonnes to 970,233 tonnes as of April 4, the last trading day ahead of China’s Qing Ming Festival, or tomb-sweeping day (April 5-8).
Copper price edges downward on risk-off mood
Other base metals track copper lower
Currency moves and data releases