METALS-London aluminium lingers near eight-month high

Updates with mid-session trading

Feb 21 (Reuters) - London aluminium prices hovered near a more than eight-month-high on Friday as traders assessed concerns over European Union envoys' agreement to ban Russian primary aluminium imports in the sanctions package.

Three-month aluminium CMAL3 on the London Metal Exchange (LME) was little changed at $2,722 a metric ton, as of 0638 GMT, after hitting its highest level since May 2024 earlier in the session.

"Aluminium led the sector higher after reports that the European Union backed a ban on Russian metal. EU Ambassadors agree to move forward with a fresh package of sanctions against the key supplier," said Daniel Hynes, a senior commodity strategist at ANZ bank.

EU envoys on Wednesday agreed on a 16th package of sanctions against Russia, EU diplomats said, including a ban on primary aluminium imports, sales of gaming consoles and the listing of 73 shadow fleet vessels.

Meanwhile, U.S. President Donald Trump said he would unveil fresh tariffs over the next month or sooner, adding lumber and forest products to previous plans for duties on imported cars, semiconductors and pharmaceuticals.

"Trump's proposed tariffs will limit demand growth, in our view... Aggressive import tariffs can weigh on capex growth as business confidence will remain subdued," ANZ said.

Attention will also be on China to see if the country unveils more stimulus at its National People's Congress meeting in March, given the tariff war and concerns about slow demand.

LME copper CMCU3 fell 0.7% to $9,499.5, nickel CMNI3 lost 1.3% to $15,455, tin CMSN3 fell 0.2% to $33,325, zinc CMZN3 eased 0.5% to $2,904.5 and lead CMPB3 firmed 0.2% to $1,996.5.

SHFE aluminium SAFcv1 rose 0.1% to 20,805 yuan ($2,870.09) a ton, SHFE copper SCFcv1 fell 0.5% to 77,000 yuan, zinc SZNcv1 lost 0.1% to 23,940 yuan, nickel SNIcv1 fell 0.7% to 123,770 yuan, lead SPBcv1 gained 0.2% to 17,080 yuan and tin SSNcv1 firmed 1.1% to 263,730 yuan.

($1 = 7.2489 Chinese yuan renminbi)

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