Base metals on the London Metal Exchange ended the week predominantly higher at the close of trading on Friday May 11, although aluminium fell 2% and edged below its $2,300 per tonne support level.
The light metal fell to a low of $2,263.50 per tonne over the course of the afternoon, while its cash/three-month spread has widened into a contango of $10 per tonne, from $4.75c per tonne earlier in the day. "Despite the loosening of the US sanctions against Russian aluminium producer Rusal, heightened uncertainty remains, thereby keeping an elevated 'supply fear' premium in the aluminium price," Metal Bulletin analyst Boris Mikanikrezai said. "Investors will continue to monitor the geopolitical developments in the Middle East, which could have an impact on global risk sentiment and thus on aluminium and its complex," he added. Elsewhere, lead's three-month price made significant gains, climbing...