Aluminum prices rose due to concerns about Russian supply

By Eileen Suring

(Reuters) – Aluminum prices rose on Monday after Australia’s announcement of a ban on exports of alumina and aluminum ore to Russia, exacerbating fears of a supply disruption of the light metal.

* The move will limit Russia’s ability to produce aluminum, one of its main exports, according to the Australian government.

* This could result in Russia having to rely on China to meet any alumina shortages, ING said in a note.

* Russia accounts for about 6% of the world’s supply of aluminum and 10% of nickel, and is a major producer of natural gas, which is used to generate electricity that powers mineral production.

* At 0940 GMT, three-month aluminum on the London Metal Exchange (LME) rose 3.7% to $3,507 a ton, after hitting its highest level since March 10.

* The most traded aluminum contract in May on the Shanghai Futures Exchange closed 2.3% higher at 23,105 yuan ($3635.38) per ton, after hitting its highest level since March 8.

* In other base metals, copper on the London Metal Exchange fell 0.9% to $10243 per ton. Lead was up 0.1% at $2,254; Zinc rose 1.8% to $3,895; And tin fell 1.4% to 41,705 dollars.

(1 dollar = 6.3556 yuan)

(Edited in Spanish by Carlos Serrano)