March 18 (Reuters) - Aluminium fell on Wednesday as

supply fears cooled with Emirates Global Aluminium finding

alternative ways to export after the U.S.-Israeli war on Iran

shut the Strait of Hormuz.

The most-active aluminium contract on the Shanghai

Futures Exchange pulled back 1.02% to 24,790 yuan ($3,600.53) a

metric ton as of 0202 GMT.

And the benchmark three-month aluminium on the

London Metal Exchange declined 0.91% to $3,368.50 a ton.

Reuters reported on Tuesday that EGA will route its aluminium

exports and raw materials through Oman's port of Sohar in the

coming days, after the U.S.-Israeli war against Iran shut the

Strait of Hormuz. Aluminium Bahrain (Alba), meanwhile,

is also exploring the possibility of using Sohar or Jeddah on

Saudi Arabia's Red Sea Coast.

The potential of alternative shipping routes for aluminium

producers offered some relief to the war-stirred supply fears,

traders said.

But as the war stretches into a third week, concerns over

production and shipping remain, with Alba initiating a shutdown

for 19% of its capacity and Qatalum operating at roughly 60%.

Some aluminium buyers in Japan, a major Asian importer, have

agreed to pay a $350 premium per ton in the second quarter, up

79% from the current quarter.

Copper also declined, weighed by inflation and growth fears amid

higher energy costs and rising stock levels in LME sheds.

The Shanghai most-traded copper contract lost 0.93%

to 99,130 yuan a ton, and the London benchmark copper

dipped 0.13% to $12,758.50.

Copper stocks in LME warehouses rose to

330,375 tons, the highest level since August 2019.

Stocks of the red metal in warehouses registered with SHFE

have also been rising rapidly since mid-December.

Among other SHFE base metals, zinc lost 2.30%,

nickel dropped 1.36%, tin slid 2.96% and lead

posted sole gain, rising 1.12%.

Elsewhere on the LME, zinc dropped 0.48% and tin

shed 0.83%. Lead and nickel were little

changed, up only 0.08% and 0.06%, respectively.

Wednesday, March 18

DATA/EVENTS

1000 EU HCIP Final MM, YY Feb

1230 US PPI Machine Manuf'ing Feb

1400 US Factory Orders MM Jan

($1 = 6.8851 Chinese yuan renminbi)