METALS-London aluminium steadies at three-month high amid US tariff worries

Updates prices as of 0751 GMT

SHANGHAI, Feb 11 (Reuters) - London aluminium traded in a tight range near a three-week high on Tuesday as investors weighed the risk of a major global trade war after U.S. President Donald Trump imposed fresh tariffs on all steel and aluminium imports.

Three-month aluminium CMAL3 on the London Metal Exchange (LME) was flat at $2,658 a metric ton as of 0751 GMT, hovering near the three-week high of $2,662.50 hit on Monday when Trump raised tariffs to 25% on steel and aluminium imports.

However, he agreed to consider exempting Australia, noting the country was one of the few with which the U.S. had a trade surplus.

"We expect any tariff will lead to higher prices for U.S. manufacturers. This would most likely be in the form of higher U.S. Midwest premiums rather than a sustained uplift in the LME price," ANZ Research said.

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 plus the Midwest premium AUPH25, which has been elevated in recent months and was last up 10% to $0.305 a lb, the highest since July 2022.

The tariffs will also shift trade patterns, with more Canadian aluminium going to Europe and the U.S. increasing purchases from the Middle East, ANZ Research added.

Among other metals, LME benchmark copper CMCU3 fell 0.6% to $9,389, zinc CMZN3 dipped 0.5% to $2,831, tin CMSN3 was unchanged at $31,145, lead CMPB3 slipped 0.7% to $1,987 and nickel CMNI3 fell 0.5% at $15,440.

The aluminium contract on the Shanghai Futures Exchange (SHFE) SAFcv1 rose 0.8% to 20,675 yuan ($2,829.32)a ton, the highest since early December 2024.

SHFE copper SCFcv1 dipped 0.3% to 77,150 yuan, nickel SNIcv1 lost 1.8% to 124,760 yuan, zinc SZNcv1 slid 0.5% to 23,745 yuan, lead SPBcv1 shed 0.2% to 17,130 yuan and tin SSNcv1 dipped 0.6% to 257,710 yuan.

($1 = 7.3074 Chinese yuan renminbi)

      
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