Aluminium prices edged higher on Wednesday as concerns over supply tightness surfaced after traders assessed risks of potential EU sanctions on metal from Russia, one of the world’s biggest suppliers.
Three-month aluminium on the London Metal Exchange was up 0.1% at $2230.50 per metric ton, as of 0232 GMT, while the most-traded March aluminium contract on the Shanghai Futures Exchange rose 1.5% to 18,925 yuan ($2,638.00) a ton.
The metal used in construction, transport and packaging rose after Poland and the Baltic states called for the European Union to ban imports of Russian aluminium and liquefied natural gas over Moscow’s invasion of Ukraine.
Earlier in the session, SHFE aluminium hit 18,990 yuan, the highest since Jan. 15, and LME aluminium was hovering near the highest since Jan. 12 hit in the previous session.
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LME zinc climbed 0.7% to $2,536 a ton, copper was nearly flat at $8,404.50, while nickel eased 0.1% to $16,290, lead edged down 0.1% at $2,166.50 and tin declined 0.7% to $26,060.
Nearby supply of LME lead is getting tighter, as implied by the discount of cash contract to the three-month contract falling to 88 cents a ton on Tuesday, from over $40 hit last month.
SHFE zinc jumped 2% to 21,190 yuan a ton, nickel increased 1.1% to 129,220 yuan, copper was up 0.4% at 68,160 yuan, lead was 0.7% higher at 16,660 yuan, and tin advanced 0.4% to 217,430 yuan.
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