SHANGHAI, Mar 3 (SMM) – Aluminium futures on the London Metal Exchange (LME) hit a new record high on Thursday, as the Russia-Ukraine conflict led to further sanctions on Russia, making traders worried about supplies from the Black Sea region.

Three-month aluminium on the LME rose as much as 2.3% to a record high of $3,650/mt. The most-traded aluminium contract on the Shanghai Futures Exchange rose more than 3.7% to 23,795 yuan/mt at one point.

Western sanctions have prompted the world's three largest container shipping companies to suspend cargo shipments to and from Russia at a time when aluminium inventories are low. LME aluminium inventories fell to 809,750 mt on Wednesday, a dramatic drop from close to 2 million mt in March 2021. Russia accounts for about 6% of the world's aluminium production, and 7% of the world's nickel ore supply, and it is also a major producer of natural gas.