London aluminium prices hit a record high on Thursday after Russian President Vladimir Putin authorised military operations in eastern Ukraine, fuelling fears of stricter sanctions on Moscow, a major metals producer.
Russian forces fired missiles at several Ukrainian cities and landed troops on its south coast on Thursday, officials and media said. US President Joe Biden said he would announce further sanctions on Russia on Thursday, in addition to financial measures imposed this week.
Three-month aluminium on the London Metal Exchange hit a record high of $3,388 a tonne earlier in the session, and was up 2.4% at $3,370 by 0616 GMT.
Aluminium and nickel cling to gains as Russia sanctions support
"These are war times and markets are edgy about supply-side disruptions," said Vijay L Bhambwani, head of research at Mumbai-based Equitymaster, adding there are possibilities of sanctions on Russian metal companies.
Russia produces around 6% of the world's aluminium and 7% of its mined nickel.
LME nickel climbed 2.6% to $25,020 a tonne, having earlier hit a peak since August 2011 at $25,170.
The most-traded April nickel contract on the Shanghai Futures Exchange was up 1.3% at 179,720 yuan ($28,433.11) a tonne, after touching record high of 182,170 yuan.
Fundamentals
LME copper rose 0.2% to $9,887 a tonne, lead was up 0.5% at $2,346.5, zinc gained 0.6% to $3,594.5 and tin was 0.4% higher at $45,095.
ShFE copper fell 0.5% to 70,940 yuan a tonne, aluminium was flat at 22,890 yuan a tonne, zinc slipped 1.4% to 24,780 yuan, lead fell 0.4% to 15,490 yuan and tin was 0.6% higher at 339,010 yuan.
Global stocks and US bond yields dived on Thursday, while the dollar, gold and oil prices rocketed higher.
San Francisco Federal Reserve Bank President Mary Daly said on Wednesday she expects the US central bank will need to raise rates at least four times this year, and likely more, to stop high inflation from getting worse.
China's Zijin Mining, said on Wednesday its joint venture copper mine project in the Democratic Republic of Congo (DRC) will spend $50 million on an upgrade that will boost both its metal producing capacity and output.
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