METALS-Aluminium hits three-week high after Trump flags new US import tariffs

Updates prices

By Polina Devitt

LONDON, Feb 10 (Reuters) - Aluminium prices touched their highest in almost three weeks and copper traded on the U.S. Comex exchange widened its premium against the London benchmark after U.S. President Donald Trump said he would impose new 25% tariffs on steel and aluminium imports.

Speaking to reporters on Air Force One on Sunday on his way to the NFL Super Bowl in New Orleans, Trump said he would announce the new metals tariffs on Monday.

Three-month aluminium CMAL3 on the London Metal Exchange was up 1.2% at $2,659 a metric ton by 1708 GMT after hitting $2,661, its highest since Jan. 21.

The U.S. is highly dependent on imported aluminium, mostly from Canada. Prices of primary aluminium in the U.S. are based on the LME benchmark CMAL3 plus the Midwest premium AUPH25, which has been elevated in recent months and was last up 10% to $0.305 a lb, its highest since July 2022.

"Tariffs would result in higher aluminium prices in the U.S., representing a significant upside risk to the U.S. Midwest premium this year, which would result in higher costs for consumers in the U.S.," said Ewa Manthey, a commodities analyst at ING.

Trump said that in addition to Monday's statement he will announce reciprocal tariffs on Tuesday or Wednesday to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.

LME benchmark copper CMCU3 added 0.4% to $9,445.50 a ton, having hit its highest since November 8 at $9,530.

Most active U.S. Comex copper futures HGH25 touched their highest since September 30 and were last up 2.2% at $4.691 a lb, representing a premium over the LME price of $896 per ton.

This premium was lower in late May 2024, when Comex copper prices HGc1 hit an all-time high of $5.1985 a lb due to a short squeeze, where parties were forced to buy back their short positions at a loss or deliver physical copper to close them out.

CME copper stocks HG-STX-COMEX have been rising since the incident and are currently at a six-year high.

LME zinc CMZN3 rose 0.2% to $2,843 per ton, lead CMPB3 added 0.2% to $1,996, tin CMSN3 gained 0.5% to $31,160 and nickel CMNI3 lost 1.5% to $15,515.

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