Aluminium prices hit a three-week trough as traders on 6 June brushed aside news that Qatar's exports of the metal had been blocked and focused instead on weak Chinese demand and rising geopolitical tensions.
Norway's Norsk Hydro said it was seeking other routes for its aluminium exports from Qatar, which have been blocked as a result of a diplomatic rift between the Gulf country and several Arab states.
"On a global scale Qatar plays a minor role in the aluminium market, direction is more dictated by China. There are sufficient (aluminium) supplies in China, inflows into Shanghai (warehouses) have increased and demand is relatively weak in summer," said Casper Burgering, analyst at ABN Amro.
ALUMINIUM: London Metal Exchange aluminium fell 0.6 percent to $1,892.50 a tonne at 1030 GMT, having earlier hit its lowest in three weeks at $1,891.
"Physical (aluminium) premiums have already been falling for weeks in most regions. Given that the availability of aluminium is not likely to have increased substantially of late ... the fall in premiums can presumably be attributed to a somewhat weaker demand dynamism," said Commerzbank in a note.
GLOBAL MARKETS: World stocks fell as tension in the Middle East, an election in Britain and upcoming testimony from the former head of the FBI pushed investors away from risky assets.
COPPER: Copper dropped 1.1 percent to $5,566.50 a tonne, marking three consecutive days of losses and hitting a 2-1/2 week low of $5,554 earlier on worries over Chinese growth and geopolitical risks.
DOLLAR: The dollar sank to its lowest in six weeks against the yen as investors also focused on weak US data, but the fall failed to lift metals. A weaker dollar makes dollar-priced metals cheaper for non-US investors.
OIL: Oil prices fell further below $50 a barrel on concerns that the Qatar diplomatic rift could undermine efforts by OPEC to tighten the market. Lower oil prices decrease mining costs and can deter investors from buying into commodity basket funds that include metals.
ZINC: Zinc, used to galvanise steel, edged up 0.3 percent to $2,491.50 a tonne, having earlier hit a 2-1/2 week low under pressure from weak Chinese steel markets.
STEEL: Chinese steel futures fell for a ninth straight day, pressured by expectations of slow demand as a seasonal slowdown in construction activity over the summer months looms.
