METALS-Aluminium hits one-month high as EU envoys agree ban on Russian imports

Updates prices in late London trade

By Polina Devitt

LONDON, Feb 19 (Reuters) - Aluminium prices hit a one-month high on Wednesday as European Union envoys agreed to ban Russian primary aluminium imports in their 16th sanctions package to be adopted on Monday to mark the third anniversary of Russia's full invasion of Ukraine.

Three-month aluminium CMAL3 on the London Metal Exchange (LME) was up 0.5% at $2,680.50 a metric ton by 1700 GMT, after hitting $2,704 for its highest since January 20.

The Russian aluminium import ban will be phased in a year from the official adoption, EU diplomats said.

Helping to cap the reaction in aluminium prices, the 27-member bloc has been reducing Russian aluminium imports since 2022 and the EU's dependence on Russia is low, traders said.

The LME aluminium contract has been rising for four consecutive sessions, also attracting buying from Commodity Trading Advisors, one trader said.

Further support was provided by LME daily data showing that total aluminium stocks in LME-registered warehouses MALSTX-TOTAL slid to 547,950 tons, their lowest since May, after 4,000 tons of outflows.

The on-warrant stocks fell to 227,775 tons after 28,850 tons in fresh cancellations, tightening the amount of metal available to the market. 0#MALSTX-LOC

The longer-term effect on metals from the geopolitical front was unclear. U.S. President Donald Trump's administration agreed on Tuesday to hold more talks with Russia on ending the war in Ukraine.

As for metals demand in the United States, the market was focused on Trump's threat of 25% tariffs on automobiles and semiconductor chips.

"Overall, the industry is struggling to work out what the near-term future holds in terms of demand, given all the U.S. tariff threats and potential counter-measures," said Ole Hansen, head of commodity strategy at Saxo Bank.

A firmer dollar .DXY weighed on other metals, making commodities priced in the U.S. unit more expensive for buyers using other currencies. FRX/

LME copper CMCU3 slipped 0.1% to $9,464 a ton, zinc CMZN3 shed 0.4% to $2,873, tin CMSN3 and lead CMPB3 were little changed at $32,790 and $1,997, respectively, while nickel CMNI3 added 0.5% to $15,420.

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