May 11, 2018 / 6:02 AM / 4 months ago

METALS-London aluminium slips, on course for 2.6 pct weekly drop

 (Adds Shanghai closing prices, updated London prices)
    BEIJING, May 11 (Reuters) - London aluminium prices fell
sharply for a second session on Friday as technical selling
continued to affect the light metal despite plunging London
Metal Exchange (LME) inventories. 
    Trading volumes were again subdued, with less than 3,000
lots changing hands by 0830 GMT, after Thursday's session was
marked by trade selling and bearish options activity.

    However, broker Marex Spectron said in a note it estimates
that long positions on aluminium are "rebuilding from the recent
low" of 2.4 percent of open interest - an indicator of market
liquidity - to 5.4 percent this week.
    Available LME aluminium stocks are at their lowest level
since 2007 after the exchange said it would stop accepting Rusal
metal from April 17, although it is now reassessing the
situation after the United States gave customers of the Russian
producer more time to comply with sanctions.
    
    FUNDAMENTALS
    * LME ALUMINIUM: Three-month aluminium on the LME
was down by 1.7 percent to $2,290 a tonne by 0837 GMT, having
fallen by as much as 2 percent earlier in the session and
slipping by 1.3 percent on Thursday.
    * ALUMINIUM: The metal is down 2.6 percent in London so far
this week but is still up by around 14.1 percent since April 5,
the day before the United States imposed sanctions on Russian
producer Rusal. 
    * TECHNICALS: LME aluminium is expected to fall to $2,254
per tonne, as it has ended a bounce around a resistance at
$2,382, Reuters market analyst Wang Tao says.
    * RUSAL: Rusal boosted first-quarter recurring net profit on
Friday amid stronger aluminium prices, but warned that sanctions
imposed by the United States in April could harm its business.

    * EGA: Emirates Global Aluminium's stock market listing is
likely to slip to 2019 because of turmoil in global aluminium
markets after the United States imposed sanctions on Rusal,
three sources familiar with the deal said.  
    * COPPER: LME copper edged up 0.3 percent and is on course
for a 1.6 percent gain this week. The most-traded July copper
contract on the Shanghai Futures Exchange closed up 0.7
percent at 51,440 yuan ($8,122.92) a tonne.
    
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    MARKETS NEWS    
    *  Asian shares rallied on Friday as investors' appetite for
riskier assets got a boost from soft U.S. inflation, which
helped alleviate worries of faster rate hikes by the Federal
Reserve.    
    
  PRICES
    
                                              0540
 Three month LME copper                       6904
 Most active ShFE copper                     51420
 Three month LME aluminium                  2302.5
 Most active ShFE aluminium                  14690
 Three month LME zinc                       3082.5
 Most active ShFE zinc                       23650
 Three month LME lead                       2318.5
 Most active ShFE lead                       19100
 Three month LME nickel                      13880
 Most active ShFE nickel                    104200
 Three month LME tin                         20860
 Most active ShFE tin                       145410
                                                  
                                                  
 LME/SHFE COPPER              LMESHFCUc3    367.19
 LME/SHFE ALUMINIUM           LMESHFALc3   -2294.8
                                                 4
 LME/SHFE ZINC                LMESHFZNc3    460.83
 LME/SHFE LEAD                LMESHFPBc3    633.61
 LME/SHFE NICKEL              LMESHFNIc3   -516.66
 ($1 = 6.3327 Chinese yuan)

    
 (Reporting by Tom Daly; editing by Richard Pullin and Sunil
Nair)
  
 
 
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