Aluminum Prices Rise Due to Russian Aluminum Export Restrictions

According to foreign news on February 19, London aluminum futures hit a one-month high on Wednesday as Russia’s raw aluminum exports to the EU market may face difficulties.

At 19:38 Beijing time, three-month aluminum on the London Metal Exchange (LME) rose by $24.5 or 0.92% to $2,693 per ton, and earlier hit $2,702.5, the highest price since January 20.

EU diplomats revealed that ambassadors of the 27 EU member states to the EU reached an agreement on the EU’s 16th round of sanctions against Russia. The new aluminum extrusion profile sanctions introduced a ban on imports of Russian raw aluminum.

Traders said that since 2022, the 27 EU member states have been reducing aluminum imports from Russia, so the region’s low dependence on Russia has helped limit the reaction of aluminum prices.

A trader said that LME aluminum futures have risen for four consecutive trading days, which has also attracted buying from commodity trading advisors (CTAs).

LME inventory data provided further support, showing that after 4,000 tons of outflows on Wednesday, total aluminum stocks in LME registered warehouses fell to 547,950 tons, the lowest since May.

The long-term impact of geopolitics on metals is unclear.

“Overall, the industry is trying to figure out what the demand situation is in the near term, given the threat of U.S. tariffs and the possible response measures taken by affected companies,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Other metals, LME three-month copper rose 0.4% to $9,513 per ton; three-month zinc rose 0.3% to $2,893.5 per ton; three-month nickel was stable at $15,350; three-month tin rose 0.5% to $32,910 per ton; three-month lead fell 0.8% to $1,981 per ton.