Aluminium prices in Shanghai and London slid on Monday, as the United States added more of the metal’s derivative products under the 50% import levy, blurring the demand outlook.

The most traded aluminium contract on the Shanghai Futures Exchange ALI1! closed daytime trade 0.68% lower at 20,600 yuan ($2,869) per metric ton.

Earlier in the session, the contract hit 20,550 yuan, its lowest level since August 6.

Meanwhile, the benchmark three-month aluminium on the London Metal Exchange ALI1! dipped 0.65% to $2,590 a ton as of 0800 GMT after touching the lowest since August 12 earlier.

The Trump administration on Friday widened the reach of its 50% tariffs on steel and aluminium imports by adding hundreds of derivative products to the list of goods subject to the levies.

The levies on the goods on the expanded list go into effect on August 18.

“Sentiment soured after Trump’s new tariff plans,” said a Singapore-based aluminium trader.

Rising inventory also pressured prices, the trader said, asking not to be named as he is not authorised to speak to media.

Also pressuring prices of the light-weight metal was higher supply, with China’s aluminium production in July rising by 0.6% from a year earlier to 3.78 million tons.

China’s imports of unwrought aluminium and products in July surged 38.2% from the prior year, customs data showed.

SHFE zinc ZNC1! fell 0.8%, lead LEAD1! shed 0.3%, copper HG1! nudged down 0.01%, nickel NICKEL1! slid 0.29% while tin FTIN1! gained 0.17%.

Other LME base metals also weakened. Copper HG1! slipped 0.34%, lead LEAD1! lost 0.53%, nickel NICKEL1! slid 0.47%, tin FTIN1! lost 0.13%, and zinc ZNC1! shed 0.45%.
Source: Reuters