SINGAPORE- Aluminum prices climbed to an all-time high on Thursday, while nickel surged to its highest in 11 years as Russia’s invasion of Ukraine prompted further sanctions on Moscow, raising trader concerns over supplies from the Black Sea region.
Commodity markets extended their bull runs on Thursday, with aluminum, coal and palm oil all hitting new records while crude oil and wheat scaled multi-year highs as Russia’s invasion of Ukraine disrupted global raw material flows.
Three-month aluminum on the London Metal Exchange rose more than 3 percent to a record high of $3,691.50 a ton. In Shanghai, the most-traded contract advanced 3.7 percent to 23,775 yuan ($3,763.65) a ton.
LME nickel climbed 6.1 percent to $27,470 a ton, after hitting its highest since April 2011 at 27,815 a ton.
“Aluminum and nickel once again led the base metals sector higher as the market braces for disruptions to Russian supply,” said ANZ in a note. “Maersk, which handles shipments for Russian aluminum giant United Co Rusal has suspended operations in Russia.”
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 aluminum 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. – Reuters
