METALS-Aluminium inches higher after EU proposes ban on imports from Russia

Adds analyst comments

Jan 30 (Reuters) - London aluminium 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 aluminium CMAL3 on the London Metal Exchange (LME) gained 0.2% to $2,625 a metric ton by 0701 GMT.

The EU ban would include aluminium 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 aluminium and alloys for the January-November period last year, according to Trade Data Monitor.

Aluminium prices will still see upward pressure from renewed sanctions on Russian metals, analysts at ANZ said in a note.

Slowing production growth due to China's capacity limit will protect the downside in the medium and long term, ANZ said.

Benchmark copper CMCU3 was down 0.3% at $9,044, after hitting its lowest level since Jan.8 on Wednesday.

"We continue to expect LME base metal flat price weakness in response to confirmation of wider tariffs," Citi said in a note.

"We expect Comex pricing of copper versus LME to widen further as tariffs are confirmed and implemented."

Earlier this week, U.S. President Donald Trump said he would impose tariffs on aluminium, copper and steel. Echoing this stance, the White House said on Tuesday that Trump still plans to issue tariffs on Canada and Mexico on Saturday while weighing fresh tariffs on China.

Meanwhile, the Federal Reserve held interest rates steady on Wednesday and Chair Jerome Powell said there would be no rush to cut them again until inflation and jobs data made it appropriate to do so.

LME zinc CMZN3 fell 0.3% to $2,774.5 a ton, nickel CMNI3 shed 0.7% to $15,395, while lead CMPB3 climbed 0.6% to $1,972 and tin CMSN3 was up 0.3% at $30,200.

The Shanghai Futures Exchange is closed for the Lunar New Year holiday.

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