Aluminium extended its fall on Wednesday to hit its lowest level in more than two weeks, after the United States widened the 50% import tariff on the metal and its products.

The most-traded aluminium contract on the Shanghai Futures Exchange slid 0.44% to 20,500 yuan per metric ton as of 0202 GMT. Earlier in the session, it touched the lowest since August 4 at 20,430 yuan.

Benchmark three-month aluminium ALI1! on the London Metal Exchange dipped 0.16% to $2,559.5 a ton, the lowest since August 5.

The U.S. Commerce Department said on Tuesday it is hiking steel and aluminum tariffs on more than 400 products that include wind turbines and appliances, and doesn’t exclude goods in transit.

Meanwhile, investors are monitoring for any indications of a U.S. Federal Reserve rate cut.

“A cut to rates would likely provide some support for economic growth and boost demand for metals,” ANZ analysts said in a note on Wednesday.

Additionally, China kept benchmark lending rates in August unchanged for the third consecutive month on Wednesday, as authorities signalled they are not in a rush to roll out monetary stimulus.

SHFE copper HG1! fell 0.41%, nickel NICKEL1! slipped 0.77%, lead LEAD1! lost 0.65%, zinc ZNC1! was little changed, while tin FTIN1! added 0.67%.

LME copper was little moved, nickel NICKEL1! shed 0.21%, lead LEAD1! ticked 0.28% lower, and zinc ZNC1! advanced 0.14%.
Source: Reuters