Prices for aluminum fell as much as 2.7% at the end of last week as a potential ban by the
London Metal Exchange on Russian imports raised supply concerns.
The drop in aluminum prices followed a record 8.5% intraday increase during the previous
trading session after media reports surfaced that the London Metal Exchange is considering
blocking new supplies of Russian metals from being delivered to its warehouses.
Any move by the London Metal Exchange to block Russian aluminum could have a major
impact on the global metals market.
In addition to aluminum, Russia is also a major producer of metals such as nickel and copper.
The smelting capacity of aluminum in Europe has already been hurt this year by record
electricity costs following Russia’s invasion of Ukraine.
Demand for aluminum and other metals is also being negatively impacted by the fact that
China’s factories continue to struggle with ongoing COVID-19 lockdowns and a property market
downturn.
Aluminum was 1.6% lower at $2,162 U.S. a ton on the London Metal Exchange today (October
3). The metal’s price has now fallen for five consecutive weeks.
