Aluminum on the London Metal Exchange (LME) has risen to a record high after the United States and Britain imposed new sanctions on Russia. This is reported by Bloomberg, according to UNN.
Details
It is noted that aluminum prices jumped by 9.4%, the highest since the introduction of the current form of the contract in 1987, and nickel prices by 8.8%, although prices subsequently reduced this advance.
The immediate price increase was caused by fears that sanctions would reduce Russian flows to Western markets.
The price jump was caused by "concerns that sanctions will reduce Russian flows to Western markets,
Russia accounts for 6% of global nickel, 5% of aluminum and 4% of copper supplies. The new restrictions prohibit new Russian supplies of all three metals to the LME, where global benchmark prices are set, as well as to the Chicago Mercantile Exchange.
Recall
On March 13, the United States and the United Kingdom introduced new bans on the import and use of Russian aluminum, copper, and nickel to limit Russia's metal export revenues and its ability to finance the war against Ukraine.