The prices for many raw materials are currently rising massively in view of the outbreak of war in Ukraine and the severe sanctions against Russia. Aluminum prices were also heading for a record high on Tuesday. As Reuters reports, the main reason for this was investor concerns about Rusal’s supplies. Rusal is based in Moscow and produces the light metal.
Aluminum prices had already reached a record high on Monday. A ton cost $3535, they say. Nickel, which is used to produce stainless steel and batteries for electric cars, also rose on shareholders’ concerns that supply chains could be disrupted. Three-month nickel rose 3.4 percent to 25,110 per tonne. Russia exports about 10 percent of global nickel.
However, aluminum appears to be the industrial metal most at risk – at least that’s what Julius Baer analyst Carsten Menke thinks, according to Reuters. And analysts at Goldman Sachs note, according to the report: “The main risk to the aluminum market is that the loss of this alumina supply will lead to an eventual cessation of primary smelting capacity in Russia, with production of around 900,000 tons per year at risk.”
The prices for copper also rose (1.7 percent). Zinc was also up (2.1 percent), lead was up 1.2 percent and tin was up 1.3 percent, it said.