22 Feb , 2022 By : Kanchan Joshi
Nickel and aluminium prices rose to multi-year highs on Tuesday, driven by concerns over supply disruption from Russia as tensions escalate in Eastern Europe. Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine after recognising them as independent on Monday, accelerating a crisis the West fears could lead to a major war.
The United States and European countries had threatened to impose sanctions on Russia, a major producer of nickel and aluminium, if it invaded Ukraine.
Three-month nickel on the London Metal Exchange was up 0.4% at $24,445 a tonne by 0310 GMT, after earlier hitting $24,700, the highest since August 2011.
The most-traded March nickel contract on the Shanghai Futures Exchange rose to a record high of 181,350 yuan ($28,607.26) a tonne, and was last up 0.2% at 178,600 yuan.
Benchmark aluminium on LME gained 1.2% to $3,318.5, having earlier risen to a more than 13-year high of $3,342.
FUNDAMENTALS
LME copper eased 0.1% to $9,890 a tonne, lead dipped 0.1% to $2,332.5, zinc was flat at $3,558 and tin rose 0.7% to $44,450, a record high.
ShFE copper fell 0.5% to 71,090 yuan a tonne, aluminium rose 1% to 22,815 yuan, zinc eased 0.3% to 24,790 yuan, lead was up 0.5% at 15,505 yuan and tin was flat at 338,050 yuan.
The premium for cash nickel over the three-month contract rose to $522 a tonne on Monday, its highest since Feb. 1, indicating tightness in nearby supplies.
Global primary aluminium output in January fell 4.5% year-on-year to 5.513 million tonnes, data from the International Aluminium Institute showed on Monday.
The global nickel market saw a surplus of 6,500 tonnes in December, compared with a deficit of 3,700 tonnes in November, data from the International Nickel Study Group showed on Monday.
The global world refined copper market showed a 79,000 tonnes deficit in November, compared with a 34,000 tonnes deficit in October, the International Copper Study Group said in its latest monthly bulletin.
MARKETS NEWS
Oil jumped to a seven-year high, safe-havens rallied and U.S. stock futures dived on Tuesday as Europe's eastern flank stood on the brink of war after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine. Meanwhile, the safe-haven yen hit a near three-week high.
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