Aluminum prices extend last week’s big gain following U.S. sanctions on major Russian producer Rusal, jumping another 3.7% on the LME to $2,371/metric ton and touching the highest level since late 2011.

“We have a potential scenario where U.S. and European markets will be shut off to Rusal, and they’ll be forced to redirect units to clients in other markets,” Deutsche Bank metals analyst Nicholas Snowdon tells Bloomberg. “There’s clear potential that [Rusal] will have to cut production.”

Aluminum stockpiles in LME warehouses add another 1.1% following last week’s 6.7% surge, as traders sought to deposit Rusal (OTC:RUALF) metal before tomorrow’s deadline after the LME said it would stop accepting the sanctioned firm’s supplies.

Alcoa (AA +1.4%), seen as a beneficiary from the price gains, is higher; also, CENX -1.2%, KALU +1.8%, ARNC +1.5%, CSTM +0.4%.

ETFs: JJU, FOIL



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