SINGAPORE: Aluminium prices climbed to an all-time high on Thursday as Russia’s invasion of Ukraine prompted further sanctions on Moscow, raising trader concerns over supplies from the Black Sea region.
Nickel prices climbed more than 3% and copper traded near previous session’s multi-month highs.
Fundamentals
Three-month aluminium on the London Metal Exchange rose 2.3% to a record high of $3,650 a tonne. In Shanghai, the most-traded contract added 3.7% to 23,770 yuan ($3,761.79) a tonne.
Sanctions by Western nations have prompted the world’s three biggest container lines to suspend cargo shipments to and from Russia at a time when aluminium inventories are low.
The United States is preparing a sanctions package targeting more Russian oligarchs as well as their companies and assets, two sources familiar with the matter said on Wednesday, as Washington steps up pressure on Russian President Vladimir Putin.
Stocks of aluminium in LME-registered warehouses have more than halved over the past 12 months to 809,750 tonnes versus nearly 2 million tonnes in March last year.
Russia produces about 6% of the world’s aluminium and accounts for about 7% of global nickel mine supplies. It is also a major producer of natural gas used to generate electricity.
LME nickel climbed 3.4% to $26,750 a tonne, the highest since May 2011.
Copper rose 1% to $10,269 a tonne, not far from previous session’s highest since October.
Source: Brecorder
