There were jumps in metal, aluminum and nickel prices after the US and UK imposed sanctions on Russia.
Aluminum recorded a record daily rise on the London Metal Exchange after the USA and the UK announced sanctions on Russian-made metals used in industry.
Aluminum rose as much as 9.4%, the fastest rate since the current contract type was first traded in 1987.
According to the news in BloombergHT, while nickel rose 8.8% due to concerns about supply chain disruption, prices in copper, which is a more liquid market, remained flat.
Russia provides 6% of global production of nickel, 5% of aluminum and 4% of copper in metals that are important for industry.
Jia Zheng, research manager at Shanghai Dongwu Jiuying Investment Management, said the immediate price move was fueled by “concerns that sanctions will reduce Russian flows to Western markets.”
The sanctions announced last week aim to reduce Russia’s war capability. Although the sanctions are not expected to halt Russian metals trade, supply chain concerns increase uncertainty in commodity markets.
Source: Dunya.com / Prepared by Irem Yildiz