The price of aluminum is about to rise in 13 years due to the crisis in Ukraine

Bloomberg – Aluminum rose to close to a 13-year high earlier this month, while Traders assessed the risks of geopolitical tensions in Ukraine and the ongoing pressure from rising energy costs on global supplies.

High-level diplomacy continues to try to calm the situation throughout UkraineAfter Western officials expressed reservations about Russian statements about the withdrawal of some of its forces. The Kremlin has consistently denied planning an attack.

Aluminum led base metals gains this year, up 16%, as rising fuel costs and environmental restrictions curbed supplies in Europe and China.. Shares on the London Metal Exchange (LME) fell again on Wednesday, along with most other metals.

In China, the largest producer and consumer of aluminum, Prices are supported by supply shortages due to the lockdown due to the Covid-19 pandemic and restrictions during the Beijing Winter OlympicsJinrui Futures Co. wrote. in a note.

On the other side, Inflation in China slowed in January, giving the central bank more room to relax ahead of a key political leadership meeting later this year.. The prospects for more monetary easing in monetary policy favor metals.

Aluminum rose 1.5% to settle at $3,256 a ton on the London Metal Exchange at 5:51 pm local time.. The metal reached $3,333 in daily trading last week, the highest level since 2008, when aluminum hit an all-time high of $3,380.15. All other major metals won at LME.

Copper stocks rose from their lowest level since 2005, bringing some relief in the tight market.

With the help of Yvonne Yue Li.

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This article was translated by Andrea Gonzalez