Most LME industrial metals fell on Tuesday, led by aluminium futures, as supply concerns underpinning aluminum prices eased.
The peace talks between Russia and Ukraine have produced the clearest signs to date that they have made progress towards ending the conflict. Russia promised on Tuesday to cut military operations in Kiev and northern Ukraine to build trust. Ukraine has put forward the most detailed plan for neutrality and a possible solution to the five-week conflict.
LME copper for delivery in three months fell $24.50, or 0.24%, to $10316.5 a tonne at 17:00 in London (00:00 on March 30).
Signs that the conflict has subsided have driven aluminum and other basic metals out of steam. Sanctions against Russia's special military operations in Ukraine have raised supply concerns because Russia is a major producer of nickel, aluminium and copper.
Russia is also a major gas supplier in Europe, where potential supply disruptions are seen as a blow to power-intensive aluminium and zinc production.
"the hope that Russia and Ukraine will reach an agreement to end the conflict has led to a sudden change in prices," said a metals analyst. "
"if expectations exceed reality, the reaction may only last for a short time."
Aluminum for three-month delivery closed down $178, or 4.93%, at $3436 a tonne.
Global stock markets and global borrowing costs soared on Tuesday amid signs that Russia and Ukraine had made progress in their first face-to-face talks in nearly three weeks.
Analysts and traders say other LME base metals are grappling with illiquidity.
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