keywords :
Prices of aluminium and other industrial metals rose on Wednesday as Ukraine and its Western allies warned that a Russian military pullback was a ploy to refit troops and the dollar weakened, making metals cheaper for non-U.S. buyers.
Russia is a major producer of aluminium, copper and nickel and gas and coal used to power smelters. Prices of these have risen as Moscow massed troops near Ukraine and invaded on Feb. 24, triggering sanctions and disrupting supply routes.
Benchmark aluminium on the London Metal Exchange (LME) was up 3.2% at $3,544.50 a tonne at 1045 GMT.
The metal used in packaging, transport and construction is up around 25% this year after rising 42% in 2021, when a supply deficit emerged.
“Metals haven’t really found their feet yet,” said Danske Bank analyst Jens Pedersen.
He said investors were balancing hopes of de-escalation and concerns that COVID-19 outbreaks could reduce Chinese demand with fears of further sanctions, energy price rises and supply disruption.
In the medium term, prices should fall as supply routes adapt, he said.
GAS: Germany triggered an emergency plan to manage gas supplies on Wednesday, days after Russia demanded payment in roubles.
High gas prices rise the cost of power, which is so high that smelters in Europe have cut output of aluminium and zinc in recent months.
CHINA: COVID-19 control measures are closing some factories in China, the biggest metals consumer. China’s factory activity likely shrank in March, a poll showed.
COPPER CHARGES: China’s top copper smelters have raised their floor treatment and refining charges (TC/RCs) for copper concentrate, sources said, pointing to more plentiful supply.
TIN SPREAD: The premium for cash tin over three-month metal on the LME surged to $760 a tonne, the highest in four months, signalling supply tightness. MSN0-3
METALS PRICES: LME copper CMCU3 was up 1.2% at $10,440 a tonne, zinc CMZN3 rose 2.3% to $4,118, nickel CMNI3 gained 2.6% to $32,615, lead CMPB3 was up 0.7% at $2,396.50 and tin CMSN3 was 0.4% higher at $42,575.