Aluminium price on the LME jumped from USD 2,200 to USD 2,400 per tonne
by David Fleschen
The aluminium price traded on the LME briefly jumped from around USD 2,200 to USD 2,400 per tonne the day before yesterday in reaction to the news that the USA is considering an import ban on the industrial metal from Russia due to the recent military escalation against Ukraine. The market reaction may ultimately have been so severe because it can be assumed that other Western countries could also follow the USA's example.
The London Metal Exchange (LME) is already discussing a trade ban on Russian metals. Such a step would significantly increase demand for non-Russian aluminium and thus prices, given the fact that the leading Russian aluminium producer accounts for around 6% of global supply and that production in the USA and Western Europe has been declining recently due to high energy costs.
Source: Commerzbank Research, Photo: Fotolia