Copper sees 5th weekly loss; aluminum hits 3-month low

LONDON — Copper clocked up a fifth weekly loss on Friday as trade tensions between the United States and China rumbled on, while aluminum hit a threemonth low ahead of a summit between US President Donald Trump and Russian President Vladimir Putin.

Messrs. Trump and Putin are due to meet in Helsinki on Monday and aluminum investors are looking for any hint that US sanctions on Rusal, the world’s second- biggest aluminum producer, will be eased or lifted.

“There’s an expectation that if you’re going to see the sanctions removed from Rusal it may come out of the meeting ( between Mr. Trump and Mr. Putin),” said Nick Snowdon, metals strategist at Deutsche Bank.

On the trade dispute between the US and China, he said speculative investors in copper were neutrally positioned, reflecting a cautious attitude amid economic uncertainty.

“In copper you had probably the single largest ( long) position ever liquidated ( on the Shanghai Futures Exchange) in June. That’s done and dusted, so that (trade) uncertainty (now) lends itself to investors staying on the sidelines and prices stabilizing,” Mr. Snowdon said.

Three- month copper on the London Metal Exchange closed up 0.20% at $6,238 a ton, but was down one percent for the week. The metal has fallen some 15% in five weeks of losses.

Aluminum closed down 0.50% at $2,031 a ton, having hit its lowest since early April at $2,021.50.

Indicating nearby tightness, cash aluminum traded at a premium of $49.50 a ton to the threemonth price, its highest level since early April.

China’s trade surplus with the US swelled to a record in June, a result that could further inflame a bitter trade dispute with Washington.

China’s aluminum exports exceeded half a million tons for the second time ever in June, while steel exports hit an 11- month high, defying US tariffs.

Analysts have raised their 2018 growth forecasts for China’s economy, a surprising result given an escalating trade war with the United States.

Copper prices are being pressured by concern about rising supply after Indonesia on Thursday struck an agreement with Freeport-McMoRan, Inc. and Rio Tinto to buy a controlling stake in the world’s second-biggest copper mine, Grasberg.

Zinc closed down 0.10% at $2,578, lead ended down 0.60% at $2,202, tin closed up 0.80% at $19,795 while nickel ended down 1.6% at $13,970. —