METALS-Aluminium rises on strong Chinese data

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Aluminium hits highest since Nov. 25

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China's 2024 GDP expanded 5.0%, met official target

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U.S. tariffs in focus with Trump's Monday inauguration

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ANZ sees aluminium and copper supply deficit in 2025

(Updates with official prices)

By Polina Devitt

LONDON, Jan 17 (Reuters) - Aluminium prices rose on Friday to the highest in almost eight weeks as strong economic data from top metals consumer China attracted momentum-following funds and set aside uncertainty over potential U.S. trade tariffs.

Three-month aluminium on the London Metal Exchange (LME) was up 1.1% at $2,665.5 per metric ton in official open-outcry trading after hitting $2,678, its highest since Nov. 25.

China's economy grew 5% last year, matching the government's target, but growth was unbalanced, led by industry and exports. The 2025 outlook for China remains uncertain with potential U.S. tariffs from the new administration in the U.S. after President-elect Donald Trump takes office on Monday.

The upper trend in aluminium attracted buying from Commodity Trading Advisors (CTAs), funds that use computer models to track momentum, said a metals trader.

Aluminium has also been supported this week by concerns about tightening supply to the European Union if the bloc bans imports from Russia.

In a sign of concern about nearby supplies, the discount for the LME cash against the three-month aluminium contract ended Thursday at $10.66, lowest since October, compared with $43 a month ago.

"The aluminium market is facing challenges, including sanctions, changes to trade policies and disruptions to the supply of bauxite and alumina," analysts at ANZ said in a note.

Both aluminium and copper markets face supply deficit this year, though with the uncertainty surrounding the return of Trump to the White House metals are likely to face volatility in coming months before the longer-term trends emerge in the second half 2025, ANZ added.

LME copper rose 0.1% to $9,243 a ton in official activity after hitting $9,290, its highest since Dec. 11.

Meanwhile, zinc gained 1.7% to $2,922 supported by continuing decline of inventories in the LME-registered warehouses. LME zinc total stocks were at the lowest since February 2024.

Lead lost 0.2% to $1,966, tin fell 0.3% to $29,475, while nickel added 0.1% to $15,975. (Reporting by Polina Devitt. Editing by Jane Merriman and David Evans)