LME aluminum hit the biggest weekly gain on record as concerns about Russian supply intensified

Aluminium futures rose in London on Friday, expected to record its biggest weekly gain, as further sanctions on Russia heightened fears of supply disruptions.

Russia accounts for about 6 per cent of the world's aluminium production, 7 per cent of the world's nickel production and 3.5 per cent of the world's copper production. The country is also a major producer of natural gas, which is used to generate electricity and provide electricity for aluminum production.

Aluminum for three-month delivery on the London Metal Exchange (LME) hit a record high of $3850 and was last reported at $3795 a tonne, up 2.11%. It has risen 14% this week and is set to record the biggest weekly increase on record.

Three-month nickel rose 2.9 per cent to $27680 a tonne, close to a seven-year high of $27976 hit the previous day. It is up about 13.3% so far this week, the biggest weekly increase since August 2019.

Spot nickel rose to $685 a tonne from three-month nickel, the highest since 2007, indicating a recent tight supply.

Copper for three-month delivery rose 1.85 per cent to $10542.00 a tonne, lead for three-month delivery rose 0.66 per cent to $2424.00 a tonne, zinc for three-month delivery rose 1.77 per cent to $3990.00 a tonne, and tin for three-month delivery rose 0.73 per cent to $46750.00 a tonne, a record high.

The April copper contract, the most actively traded on the Shanghai Futures Exchange, rose 0.51 to 72960 yuan per ton.

Shanghai Aluminum rose 0.17 per cent to 23550 yuan per ton, Shanghai zinc fell 1.11 per cent to 25770 yuan per ton, Shanghai lead fell 0.68 per cent to 15435 yuan per ton, Shanghai tin rose 0.25 per cent to 342560 yuan per ton, and Shanghai nickel rose 3.79 per cent to 187770 yuan per tonne. at one point in early trading, it rose 6.2%.

Chile's main copper mine production fell in January, mainly due to weak production by Chile's state copper company (Codelco), according to data released by Chile's official agency on Thursday.

Copper production by Chile's national copper company fell 15 per cent year-on-year to 120800 tons, according to (Cochilco), Chile's national copper commission.

Global copper smelting activity fell in February, partly because of the Lunar New year holiday in China, the leading producer, according to satellite monitoring data from copper factories.

Asian stock markets and the euro fell sharply, while oil prices jumped. Investors have been further unnerved by reports that a nuclear power plant caught fire during continuing fierce fighting between Ukrainian and Russian forces.