METALS-Aluminium hits one-month high on EU sanctions threat for Russian metal

* EU to propose ban on Russian aluminium, Reuters reports * COMEX copper trades at large premium to LME benchmark * LME lead falls as stocks in LME-registered warehouses rise (Updates prices) By Polina Devitt LONDON, Jan 15 (Reuters) - Aluminium prices rose on Wednesday as potential tightening of supply to the European Union if the bloc bans imports of the metal from Russia triggered buying by momentum-following funds. Three-month aluminium CMAL3 on the London Metal Exchange (LME) was up 1.7% at $2,602.50 per metric ton by 1706 GMT after hitting $2,607, its highest since Dec. 16. Reuters reported on Tuesday that the European Commission would propose a ban on imports of Russian aluminium in its next sanctions package against Moscow over its war in Ukraine. Supplies from Russia account for only 6% of the EU's aluminium import needs, said Alastair Munro, senior base metals strategist at broker Marex. "So it is not that big and you know trade routes will be shifted," he said, adding that there was also a strong bid in aluminium from Commodity Trading Advisors (CTAs), funds that use computer models to track momentum. Indicating some worries about nearby supplies, the discount for the LME cash against the three-month aluminium contract CMAL0-3 narrowed to a three-month low of $13.5 per ton vs $44 on Dec. 11. Meanwhile, U.S. Comex copper futures continued trading at a large premium of $464 a ton to the LME copper benchmark after the U.S. contract's sharp growth with the pricing in of expected import tariffs promised by U.S. President-elect Donald Trump. LME copper CMCU3 rose 0.3% to $9,183.50 a ton while U.S. Comex copper futures HGc3 gained 0.8% to $4.376 per lb, or $9,647 a ton. The contracts hit the highest since Dec. 12 and Nov. 8, respectively, after U.S. inflation data. A number of U.S. commodities are effectively pricing in a 45-55% chance of a 10% broad tariff or 10% critical mineral-specific tariff, Citi said. Easing broad risks for the Middle East, Israel and Hamas reached a ceasefire agreement meant to end the 15-month-old Gaza war, according to an official. On the supply side, South Africa temporarily closed a key border crossing with Botswana - which copper miners in Zambia and the Democratic Republic of Congo use to move cargo to a port - due to heavy rainfall. In other LME metals, lead CMPB3 lost 1.6% to $1,934 a ton as stocks in LME-registered warehouses 0#MPBSTX-LOC rose to their highest since December after deliveries to Singapore. LME zinc CMZN3 was steady at $2,861, tin CMSN3 fell 0.7% to $29,510 and nickel CMNI3 was down 0.8% at $15,863. (Reporting by Polina Devitt Editing by David Goodman, Kirsten Donovan) (([email protected]; Reuters Messaging: [email protected])) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))