Aluminum hit an all-time high in London due to rising supply concerns

(LME) aluminum on the London Metal Exchange rose to an all-time high on Thursday as the crisis between Russia and Ukraine led to further sanctions on Russia, raising concerns among traders about supplies from the Black Sea region.

The price of nickel rose more than 3%, while the price of copper hit a multi-month high.

At one point, aluminum for LME three-month delivery rose 2.3% to a record high of $3650 a tonne. At one point, the main aluminum contract on the Shanghai Futures Exchange rose more than 3.7 per cent to $23795 a tonne.

Western sanctions have prompted the world's three largest container shipping companies to suspend shipments to and from Russia at a time when aluminium inventories are low.

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.

Three-month nickel rose more than 3.6 per cent to $26850, its highest level since may 2011, while zinc rose more than 3.5 per cent to $3999.00, its highest level since may 2007.

Copper for delivery in three months rose more than 1.2 per cent at one point, breaking the previous session's highest level since October.

Asian stock markets tried to rebound on Thursday after conciliatory remarks from the US Federal Reserve / FED helped Wall Street rebound, even as oil and commodity prices soared as a dire harbinger of global inflation as a result of the war in Ukraine.