After the entry of the Russian army into the territory of the self-proclaimed republics in the east of Ukraine, the prices of industrial metals are climbing. In the case of aluminum and nickel, many years of highs have even been surpassed. Markets are worried about disruptions in the supply of these metals from Russia.
Russia accounts for about six percent of the world’s aluminum production and seven percent of nickel production. Sanctions imposed by the West on Russian aluminum producer Rusal in 2018 caused the price of the silvery metal to rise by 35 percent in a matter of days.
The price of aluminum climbed to $3,380 a ton on Tuesday afternoon, leaving just 15 centers below the record level set in 2008. Aluminium has risen by around 17 per cent on the London Stock Exchange since the beginning of this year, and last year its price rose by 42 per cent.
In the case of nickel, the situation is similar. Its price on the London Stock Exchange has risen to $ 24.5 thousand per ton, making it just under $ 400 cheaper than in the record year of 2011. Nickel has already risen by 18 percent this year after its price jumped by a quarter last year. But according to experts quoted by Reuters, both metals would likely have become more expensive even without a Russian invasion of eastern Ukraine.
