Aluminum surges on sanction worries; copper also gains

LONDON — Aluminum prices spiked on Tuesday on worries over potential European Union (EU) sanctions while copper pushed higher on hopes that top metals consumer China will unleash more stimulus to boost its economy.

Three-month aluminum on the London Metal Exchange (LME) was up 3.2% at $2,228.50 a metric ton for the biggest daily percentage gain in a month. The metal used in construction, transport, and packaging spiked after Poland and the Baltic states called for the EU to ban imports of Russian aluminum and liquefied natural gas.

Benchmark LME copper rose 0.7% to $8,405 a metric ton after edging lower on Monday.

China’s cabinet on Monday pledged more fund injections in the capital market to stabilize market confidence. One option included mobilizing about two trillion yuan ($278.9 billion) to bolster the stock market, Bloomberg News reported.

Positive technical signals were also in place, with copper having broken above both the 200-day moving average and a downtrend in place since Dec. 28, when it touched its highest in nearly five months, he added.

Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, also flagged the prospect of a short-covering rally if copper made further gains after many speculators took bearish bets over the past two weeks. Many of those were on the US Comex market, with the biggest bet on lower prices since July 2022.

US Comex copper futures rose 0.9% to $3.80 per lb. LME zinc climbed 2.6% to $2,521 a ton, and nickel advanced 1.9% to $16,315. Lead gained 1.9% to $2,165.50 for its highest level in nearly two months while tin jumped 2.2% to a fourmonth peak of $26,185. —