Aluminium prices up amid low supply

ALUMINIUM prices edged higher on Wednesday as concerns over supply tightness surfaced after traders assessed risks of potential European Union (EU) sanctions on metal from Russia, one of the world’s biggest suppliers.

At the London Metal Exchange (LME) zinc climbed 0.7 percent to US$2,536 a tonne, copper was nearly flat at US$8 ,404.50, while nickel eased 0.1 percent to US$16, 290, lead edged down 0.1 percent at US$2, 166.50 and tin declined 0.7 percent to US$26, 060.

This is according to a daily report produced by Access Bank Zambia.

The report also showed that oil prices edged lower on Wednesday, weighed down by concerns over tepid demand and a stronger dollar.

“The front-month March contract for Brent crude dipped 14 cents, or 0.1 percent, to US$79.41 a barrel. United States West Texas Intermediate crude ticked down 11 cents, or 0.2 percent, to US$74.26 a barrel,” according to the report.

Gold prices on the other hand inched lower on Wednesday, as hawkish comments from Federal Reserve officials and strong U.S. data doused hopes for early interest rate cuts, while investors awaited a slew of economic reports this week for more clarity on rate trajectory.

Spot gold fell 0.2 percent to US$2, 024.46 per ounce. U.S. gold futures were unchanged at US$2, 025.50.

Meanwhile, low dollar trade was observed on the Zambian market, as the local unit continued to set new lows in its trading history.

The demand for U.S. dollars was at an all-time high, which put pressure on the value of local money

“The Kwacha edged lower against the U.S. dollar in Tuesday’s trading session. The USD/ZMW opened at K26. 5397/26. 5884 and closed at K26. 6081/26. 6550 on the market average interbank bid and offer respectively,” according to the report.