Recent geopolitical tensions have precipitated a sharp rise in metal prices following new sanctions imposed by the UK and US. These sanctions effectively ban the trading of newly produced Russian metals — namely aluminum, nickel, and copper — on two of the world's major exchanges. This decisive action aims to constrict Russia's economic capabilities amidst broader geopolitical conflicts and has had immediate effects on global commodity markets.
The London Metal Exchange (LME) has reacted by disallowing Russian metal produced after April 13 to be stored in its warehouses, signaling a shift in market dynamics that could redefine pricing benchmarks and availability.
Aluminum experienced its highest single-day percentage increase since 1987, soaring up to 9.4% and settling at $2,586 per ton.
Nickel and copper also saw gains, with nickel rising by 2.7% due to its critical role in electric vehicle batteries and steel production, while copper edged up by 0.4% to nearly $9,500 a ton, a 22-month high.
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