Prices for several key non-ferrous metals rose around 5% in early London trading Feb. 24 as concerns grew of a curtailment in supplies of some metals following news of Russia’s invasion of Ukraine.
Russia is a large producer of metals, including aluminum and nickel, and is also a significant copper producer. The near-certainty that tough new sanctions would be extended to trade with Russia was expected by market sources to tighten supplies further on global markets that are already tight and in some cases deficit.
In a press statement posted later on Feb. 24, European Commission President Ursula von der Leyen said that the EC “will present a package of massive and targeted sanctions to European Leaders for approval.”
The London Metal Exchange three-month spot nickel price was indicated at $25,315/mt at 0938 GMT on Feb. 24, compared with the Feb. 23 closing price of $24,396/mt. The increase pushed nickel to a new multi-year high just under $25,400/mt.
The LME three-month spot copper price was at $9,954/mt ($4.52/lb) at 0938 GMT on Feb. 24, compared with the Feb. 23 close of $9,866/mt.
The LME three-month spot aluminum price skyrocketed nearly 5% to an all-time high of $3,450/mt.
“Increased volatility on the escalation of the conflict demonstrates that markets had not fully priced in the level of risk for deeper conflict,” Mark Haefele, chief investment officer, UBS Global Wealth Management, said on markets’ response to the invasion. “We anticipate further volatility in the near-term as leaders calibrate and announce their response to this escalation.”
Gold and palladium
In precious metals, analysts project prices will surge above $2,000/oz should conflict escalate further, with prices on Feb. 24 hitting $1,954/oz, the highest level in more than a year as investors turn to “safety” assets.
The price of palladium likewise jumped on Feb. 23 by about 5%, and continued its upward trajectory on Feb. 24, peaking at nearly $2,600/oz, its highest level in over half a year.
