ADVERTISEMENT

Aluminum rockets to a 6-year high after US imposes sanctions on a major Russian producer

Traders are concerned about supply disruptions.

  • Late last week, the Trump administration announced
  • Traders are concerned about supply disruptions.
ADVERTISEMENT

Aluminum surged to a six-year high on Thursday following US sanctions imposed on a key Russian producer.

Last week Friday, the Trump administration announced sanctions on more than a dozen Russian entities, including United Co. Rusal, the world's second-largest aluminum producer.

Futures on the London Metals Exchange jumped by more than 4% to as high as $2,298 a metric ton.

ADVERTISEMENT

"With an existing large deficit, and around 500kt of China's 2017 supply now subject to +50% duties, the US could find aluminum scarce in 2018, if ex-China supply is less than forecast," Credit Suisse's Matthew Hope said in a note on Thursday.

"To attract sufficient supply, its domestic price might need to climb to the world's highest, via the regional premium, to the detriment of its manufacturers."

The relationship between the US and Russia could be further strained following an apparent chemical weapons attack in Syria. President Donald Trump has condemned Russia and Iran for supporting Syrian President

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

Sony’s creators convention redefines the creative landscape for content creators

Sony’s creators convention redefines the creative landscape for content creators

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

10 African countries with the lowest life expectancy according to the World Bank

10 African countries with the lowest life expectancy according to the World Bank

Kenyan women are more obese than their men - here’s why

Kenyan women are more obese than their men - here’s why

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

10 most dangerous African countries in 2024

10 most dangerous African countries in 2024

Russia’s nuclear influence expands further north of Africa

Russia’s nuclear influence expands further north of Africa

ADVERTISEMENT