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METALS-London aluminum climbs for 6th session after LME suspends Rusal metal

(Adds analyst comment, premiums; updates prices) BEIJING, April 11 (Reuters) - London aluminum prices traded higher for a sixth straight session on Wednesday, as the fallout from U.S. sanctions on Russian producer United Company Rusal continues to roil metals markets. The London Metal Exchange (LME) will suspend Rusal's aluminum from its list of approved brands from April 17 after some members raised concerns about settling LME contracts with sanctioned companies, LME Chief Executive Matt Chamberlain told Reuters. "While the full implications (of the Rusal sanctions) are still unknown, there is still a significant risk to global supply," ANZ wrote in a note, adding that the sanctions came on top of 10 percent tariffs on U.S. aluminum imports, which had already tightened the market in the United States and raised premiums.

FUNDAMENTALS

* LME ALUMINIUM: Three-month aluminum on the LME was trading at $2,205 at 0420 GMT, up 0.2 percent from the previous close but down from a 10-week high of $2,242 hit during electronic trading on Tuesday after the LME said it would take steps to keep Rusal aluminum out of its warehouses.

* SHFE ALUMINIUM: The most-traded June aluminum contract on the Shanghai Futures Exchange (ShFE) was flat at 14,335 yuan ($2,281.88) a tonne, having earlier touched 14,475 yuan, its highest since March 6.

* RUSAL: Rusal said on Wednesday that two of its non-executive directors resigned after the company's inclusion on a new list of U.S. sanctions.

* RUSAL BONDS: Rusal's dollar bonds slumped to record lows and two major customers said they were reviewing their contracts.

* RIO: Rio Tinto Plc, is reviewing its dealings with Rusal to ensure compliance with U.S. sanctions, a top executive said on Tuesday, but added it was too soon to discuss the future of its Australian venture with Rusal.

* PREMIUMS: Physical premiums for aluminum deliveries to mainland China from ShFE bonded warehouses rose by $5 to $135 a tonne <0#BASEBW-SHMET> on Wednesday. In the United States, the Comex aluminum premium jumped to 20.7 cents a pound ($456 a tonne) from 18.4 cents on Friday, the highest in three years.

* TRADE FLOWS: Traders and warehouse sources said the high premium was attracting aluminum to the United States from tariff-exempt countries that had been stored in Asia, tightening Asian supply.

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MARKETS NEWS

* Asian stocks rose modestly on Wednesday, paring earlier gains as optimism that trade ties between Washington and Beijing were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries.

DATA AHEAD (GMT) 1230 U.S. Consumer prices Mar 1500 U.S. Cleveland Fed CPI Mar 1800 Federal Reserve releases minutes from its March 20-21 policy meeting

PRICES

BASE METALS PRICES 0420 GMT Three month LME copper 6925 Most active ShFE copper 50970 Three month LME aluminum 2205 Most active ShFE aluminum 14335 Three month LME zinc 3249 Most active ShFE zinc 24490 Three month LME lead 2388.5 Most active ShFE lead 18460 Three month LME nickel 13665 Most active ShFE nickel 101340 Three month LME tin 21000 Most active ShFE tin 144230

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 418.36 LME/SHFE ALUMINIUM LMESHFALc3 -1759.66 LME/SHFE ZINC LMESHFZNc3 243.5 LME/SHFE LEAD LMESHFPBc3 97.3 LME/SHFE NICKEL LMESHFNIc3 61.52

($1 = 6.2821 Chinese yuan)

(Reporting by Tom Daly; additional reporting by Melanie Burton in MELBOURNE; editing by Richard Pullin and Amrutha Gayathri)