METALS-Aluminium slips as alternative shipping routes ease supply concerns

March 18 (Reuters) - Aluminium fell on Wednesday as supply fears eased after Emirates Global Aluminium (EGA) secured alternative export routes, following the shutdown of the Strait of Hormuz amid the U.S.-Israeli war on Iran.

The most-active aluminium contract SAFcv1 on the Shanghai Futures Exchange eased 0.98% to close daytime trade at 24,800 yuan ($3,608.06) a metric ton.

The benchmark three-month aluminium CMAL3 on the London Metal Exchange declined 1.04% to $3,364 a ton as of 0712 GMT.

EGA will route its aluminium exports and raw materials through Oman's Port of Sohar in the coming days, Reuters reported on Tuesday, as the crucial Strait of Hormuz remains effectively shut.

Meanwhile, Aluminium Bahrain (Alba) ALBH.BH is also exploring alternative routes via Sohar or Jeddah on Saudi Arabia's Red Sea Coast.

The availability of alternative shipping channels has offered some relief to supply fears, traders said.

But concerns over production and shipping disruptions persist as the war enters its third week. Alba has initiated a shutdown of 19% of its capacity, while Qatalum - a major aluminium smelter in Qatar - is operating at roughly 60%.

Meanwhile, some aluminium buyers in Japan, a major importer in Asia, have agreed to pay a $350 premium per ton for second-quarter shipments, a 79% jump from the current quarter.

Copper also fell, weighed by inflation and growth fears linked to higher energy costs and rising inventories in LME sheds.

The Shanghai most-traded copper contract SCFcv1 lost 1.47% to 98,590 yuan a ton, and the London benchmark copper CMCU3 dropped 0.49% to $12,712.

Copper stocks in LME warehouses MCUSTX-TOTAL climbed to 330,375 tons, the highest since August 2019, while inventories at SHFE warehouses CU-STX-SGH have also been rising steadily since December.

Among other SHFE base metals, zinc SZNcv1 lost 2.28%, nickel SNIcv1 dropped 1.42% and tin SSNcv1 slid 2.59%. Lead SPBcv1, up 0.88%, was the sole gainer.

Elsewhere on the LME, zinc CMZN3 dropped 0.31% and tin CMSN3 shed 0.70%. Lead CMPB3 rose 0.21% and nickel CMNI3 added 0.29%.

($1 = 6.8735 Chinese yuan renminbi)