Aluminum in LME hit a new high because of concerns that logistics problems would affect supply.

LME three-month aluminum hit another record high on Wednesday as investors worried that logistics challenges would hamper metal supplies as Russia, a major aluminium producer, was severely sanctioned by western countries.

17:00 London time (01:00 Beijing time on March 3rd)), LME aluminum for three-month delivery rose 2.62 per cent, or $91.00, to close at $3569 a tonne, after the contract surged to a record high of $3597 a tonne before giving up gains.

Aluminum is widely used in transportation, packaging and construction industries. Aluminum prices have soared 37% in the past two and a half months, initially due to falling production due to power supply problems and, most recently, to record highs in the wake of the escalating crisis in Ukraine.

Daniel Briesemann, an analyst at Commerzbank, said, "We are now seeing the second round of sanctions, logistics problems will intensify, there may be supply problems."

Daniel Briesemann said he was raising his metal price forecast and would not be surprised if aluminium hit $4000 a tonne.

The world's three largest container shipping companies suspended shipments of goods to and from Russia on Tuesday, dealing a further blow to Russia's international trade.

LME aluminium stocks fell to 809750 tonnes on Wednesday, up from nearly 2 million tonnes in March 2021.

Russia accounts for about 6 per cent of the world's aluminium production and about 7 per cent of the world's nickel supply. The country is also a major producer of natural gas used for power generation.

LME three-month nickel closed up more than 3 per cent to $26505 a tonne in intraday trading, the highest level since March 2011.

"Depot status LME Nickel continues to rise and Nickel brushes to a new high during the water period is all due to" shelling "? [SMM analysis]

Zinc for LME three-month delivery also closed more than 3 per cent higher, hitting $3910 a tonne in intraday trading, the highest level since October 2021, on fears of smelter shutdowns.

"rising electricity prices are driving up zinc prices, as many market participants believe that more zinc smelters will cut production as a result of higher electricity prices," Daniel Briesemann said.

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At the end of the Asian session, the LME metal was collectively restless and Lun aluminum hit a new high. Zinc rose nearly 4% at one time [SMM Review]