London aluminum prices have risen by more than 5% this morning. The reason for this is the conflict in Ukraine, which has led to Western countries imposing sanctions on Russia, a major aluminum supplier. This can lead to logistical problems and supply disruptions on the world market.
Aluminum futures on the London Metal Exchange (LME) rose 2.3% to $3,577.5 per ton, following a massive 5.2% gain shortly before.
Russia is the world’s second-largest producer of aluminum (about 6%) and accounts for almost 10% of total nickel demand. It is also a major producer of natural gas, which is used to generate the electricity needed for aluminum production.
The LME announced yesterday it will suspend trading in nickel futures after prices rose above $100,000 per ton due to nickel supply shortages.
The LME does not expect a new nickel trading plan before March 11.