Base metals prices on the London Metal Exchange were predominantly higher during morning trading on Thursday December 20, with a weaker US dollar index sustaining buying momentum while the potential removal of US sanctions against UC Rusal pressured aluminium to a fresh 2018 low.
Reaching an intraday low of $1,905.50 per tonne, aluminium's three-month price fell to its lowest level of the year amid news of the US Treasury's plans to remove sanctions against Rusal. The move could encourage a wave of Russian aluminium return to the market, with Rusal's total output prior to sanctions accounting for 5.8% of the world's aluminium output and 6.3% of global alumina production. Separately, more than 220,000 tonnes of aluminium has been shipped into LME warehouses since December 12, adding further downward pressure to aluminium futures. "It's difficult to say what the impact of this is going to be at the moment. [Rusal] material will naturally come back to market, but people who buy and sell it will be ready for this. I think it will have a slightly depressing impact on the market. Meanwhile, Rusal is going to want to raise cash immediately," SP...