Feb 8 (Reuters) - London aluminium prices hit a near four-month high on Tuesday boosted by dwindling inventories, while coronavirus curbs in the Chinese city of Baise has hit transportation of alumina raising concerns over a potential cut in production.
Three-month aluminium on the London Metal Exchange was up 1.2% at $3,170 a tonne as of 0250 GMT, after hitting a peak since Oct. 19 at $3,172 earlier.
The most-traded March aluminium contract on the Shanghai Futures Exchange rose 1.4% to 22,465 yuan ($3,533.90) a tonne. Earlier in the session, the contract hit 22,615 yuan, a peak since Oct. 22 last year.
Aluminium stocks in LME approved warehouses fell to 768,250 tonnes, their lowest level since February 2007.
The premium of LME cash aluminium over the three-month contract has risen to $40 a tonne, highest since July 2018, indicating tightening nearby supplies.
Antaike, a government-backed consultancy, said in a statement on Monday that part of local alumina production - a raw material used to make aluminium - has been affected by the COVID-19-related restrictions in Baise in the Guangxi region and more producers saw transportation disruptions. read more
The threat of sanctions on Russia, a major aluminium producer, if it attacks Ukraine has also intensified supply concerns. read more
FUNDAMENTALS
* LME copper rose 0.4% to $9,812 a tonne, nickel dipped to $23,270, lead edged 0.3% higher to $2,203, zinc was up 0.4% at $3,640.5 and tin inched up 0.1% to $42,985.
* ShFE copper eased 0.3% to 70,620 yuan a tonne, nickel gained 0.9% to 172,330 yuan, zinc rose 0.7% to 25,345 yuan, lead fell 0.4% to 14,810 yuan and tin was 0.6% higher at 333,730 yuan.
* Mining activity at Peru's massive Las Bambas copper mine, which accounts for 2% of global supply, has started to fall sharply after protesters blocked a key access road late last month, according to unreported power use data and a company source. read more
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MARKETS NEWS
* Asian equities consolidated recent gains, as investors' sentiment improved amid strong results by U.S. companies, helping stocks recover from the worst start to the year since 2016, while a resurgent euro paused ahead of U.S inflation data.
DATA/EVENTS (GMT)
1330 US International Trade Dec
($1 = 6.3570 Chinese yuan renminbi)
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Reporting by Eileen Soreng in Bengaluru and Min Zhang in Beijing; Editing by Rashmi Aich
Our Standards: The Thomson Reuters Trust Principles.
