Shanghai Futures Exchange copper eased by 0.7 percent on Friday after the United States imposed sanctions on Russia's UC Rusal, the world's second biggest producer of the metal, raising supply concerns. China's aluminium exports in March rose to their highest since June as favourable pricing led the world's biggest producer to sell more abroad even as the nation faces scrutiny over its trade practices.
After a decade of oversupply, the global aluminium market has facing a deficit of some 800,000 tonnes already this year, said Dominic Schnider of UBS in Singapore. "We have a bullish view on aluminium with $2,400 as a target in three months. That's really based on the perception that overall supply growth is constrained by China and they have genuine interest in keeping an eye on capacity," Schnider said.
US sanctions on Russian businesses and individuals are hitting companies, including aluminium giant Rusal controlled by tycoon Oleg Deripaska, and triggering responses across markets.