March 13 (Reuters) - Aluminium eased on Friday as rising
oil prices remained a focus and continued to fuel inflation
concerns, although the metal was headed for weekly gains amid
supply risks linked to the ongoing Middle East war.
The most-active aluminium contract on the Shanghai Futures
Exchange was down 0.26% at 25,250 yuan ($3,667.13) a
metric ton as of 0250 GMT, but was on course for a near 3%
weekly gain.
The benchmark three-month aluminium contract on the London
Metal Exchange dipped 0.09% to $3,513.50 a ton and was
set to end the week up by 2%.
The Middle East war has disruptedshipment and delivery of
aluminium and raw materials to and from the region that accounts
for around 9% of the world's aluminium output.
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,
easing some supply worries.
However, the oil price surge has stoked fears of higher
inflation, pressuring base metals including aluminium and
capping gains driven by supply risks from the Middle East,
traders said.
Iran's new Supreme Leader Mojtaba Khamenei vowed to keep the
Strait of Hormuz shut, heightening worries about a prolonged
conflict.
Brent futures are hovering around $100 a barrel,
slightly easing from Thursday. Higher energy costs have prompted
investors to scale back bets of U.S. rate cuts this year.
Meanwhile, trading houses have stepped up activity amid
expectations of an aluminium deficit that has recently been
worsened by the Middle East war. Commodity trader IXM is
weighing a restart of aluminium trading, Reuters reported on
Thursday, and Mercuria cancelled nearly 100,000 tons of
aluminium in LME-approved warehouses in Malaysia on Monday.
Elsewhere on SHFE, copper dropped 0.31%, zinc
shed 0.41%, lead declined 0.45%, tin
lost 1.29% and nickel added 0.11%.
Among other LME metals, copper eased 0.53%, lead
dropped 0.34%, nickel lost 0.88%, tin
declined 0.58% and zinc was little changed.
Friday, March 13
DATA/EVENTS
0700 UK GDP Est 3M/3M Jan
0700 UK GDP Estimate MM, YY Jan
0700 UK Services MM, YY Jan
0700 UK Manufacturing Output MM Jan
0745 France CPI (EU Norm) Final MM, YY Feb
0745 France CPI YY, MM, NSA Feb
1230 US Consumption, Adjusted MM Jan
1230 US Core PCE Price Index MM, YY Jan
1230 US PCE Price Index MM, YY Jan
1230 US Durable Goods Jan
1230 US GDP 2nd Estimate Q4
1400 US U Mich Sentiment Prelim Mar
($1 = 6.8855 Chinese yuan renminbi)