LME aluminium set for 9% weekly slump; nickel remains suspended

Register now for FREE unlimited access to Reuters.comMarch 11 (Reuters) – London aluminium was headed for a 9% weekly decline on Friday as investors turned cautious following nickel’s trading suspension after an unprecedented surge in prices amid uncertainty over supplies from major producer Russia.Three-month aluminium on the London Metal Exchange was up 1.5% at $3,480 a tonne, as of 0240 GMT. The most-traded April aluminium contract on the Shanghai Futures Exchange gained 2.2% to 21,955 yuan ($3,472.13) a tonne.Aluminium has gained nearly a fifth this year due to continued worries about the impact of the invasion of Ukraine by Russia, which accounts for about 6% of global supply of the lightweight metal.Register now for FREE unlimited access to Reuters.comBritain added Russian billionaires Oleg Deripaska and Roman Abramovich, both of whom have stakes in metals producers, to its sanctions list on Thursday. read more Global miner Rio Tinto (RIO.L), (RIO.AX) also said it was cutting all ties with Russian businesses. read more Meanwhile, LME said it will not restart the trading of nickel contracts on Friday as it had anticipated because the criteria for restarting have not been met. read more ShFE nickel hit its limit down in early trade, falling 17% to 222,190 yuan a tonne, following a one-day suspension amid price volatility. FUNDAMENTALS* LME copper eased 0.2% to $10,102 a tonne, lead rose 0.8% to $2,375 and tin gained 1.4% to $44,360, while zinc inched 0.1% higher to $3,866.* ShFE copper rose 0.1% to 71,970 yuan a tonne, zinc was up 0.4% at 25,545 yuan, lead dipped 0.5% to 15,205 yuan and tin eased 0.3% to 340,460 yuan.* LME said on Thursday that Russian restrictions on exports and imports introduced on March 8 do not include metals, and therefore, will not affect its brands. * China’s securities regulators are gathering information from futures brokerages about their clients’ short positions in nickel to prevent spillover risks from rocketing prices this week, three people with knowledge of the matter said on Thursday. read more * Chile’s environmental regulator said on Thursday it had fined Escondida mine, world’s largest copper mine controlled by company BHP (BHP.AX), $8.2 million for damage caused by water extraction in the Salar de Atacama salt flat. read more * U.S. consumer prices surged in February and inflation is poised to accelerate even further as Russia’s war against Ukraine drives up the costs of crude oil and other commodities, making it almost certain the Federal Reserve will raise interest rates next week. read more * For the top stories in metals and other news, click orMARKETS NEWS* The dollar hit a new five-year high on the yen on Friday after a strong U.S. inflation report, while the euro struggled to hold its own as a hawkish turn from the European Central Bank was offset by growth risks emanating from the Ukraine crisis.DATA/EVENTS (GMT)0700 Germany HICP Final YY Feb0700 UK Manufacturing Output MM Jan0700 UK GDP Estimate YY, MM Jan0700 UK GDP Est 3M/3M Jan2300 US U Mich Sentiment Prelim March($1=6.3232 Chinese yuan)Register now for FREE unlimited access to Reuters.comReporting by Eileen Soreng in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.