(Recasts, updates prices as of Asian market close)
SHANGHAI/BEIJING March 13 (Reuters) - Aluminium slid on
Friday as supply concerns eased and the dollar firmed, with
elevated energy prices dimming prospects of U.S. rate cuts,
although persistent shipping disruptions via the Strait of
Hormuz kept prices on track for weekly gains.
The most-active aluminium contract on the Shanghai Futures
Exchange closed daytime trade down 1.4% at 24,960 yuan
($3,623.06) a metric ton. It still rose nearly 1% week-on-week.
The benchmark three-month aluminium contract on the London
Metal Exchange was down 1.01% at $3,481 a ton by 0746
GMT, butwas set to end the week up by 1.4%.
Supply fears eased after Norsk Hydro ( NHYKF ) said on
Thursday that its Qatalum aluminium smelter in Qatar halted a
curtailment announced last week and would keep production at
around 60% of its capacity.
However, the Middle East war has effectively choked
shipments through the Strait of Hormuz, fuelling supply concerns
and powering prices of the light metal used in transport,
construction and packaging. The region accounts for around 9% of
the world's aluminium output.
Price gains were capped by a stronger dollar as
surging energy prices fanned inflation concerns and dented bets
of U.S. rate cuts.
A strengthening dollar weighs on greenback-denominated
commodities, making them less affordable for investors using
other currencies.
Additionally, commodities trader IXM is weighing a restart
of its aluminium trading business this year, coinciding with
some forecasts of a supply deficit of the metal. The Iran war
has worsened the aluminium deficit, heightening its trading
appeal.
Among other SHFE metals, copper dropped 0.55%, zinc
shed 0.6%, lead declined 0.45%, tin
tumbled 4.14% and nickel lost 0.9%.
In LME metals, copper lost 1.01%, lead
dropped 0.36%, nickel slipped 1.45%, tin
declined 2.91% and zinc shed 0.3%.
($1 = 6.8892 Chinese yuan)