Aluminum rose on Thursday, recouping some of the previous session’s losses, as supply uncertainty from Russia increased price volatility.
Benchmark aluminum on the London Metal Exchange (LME) rose 2.5% to $3,424 a tonne after soaring as much as 6.5%.
Prices of aluminum, used in transportation, construction and packaging, soared 20% following Russia’s attack on Ukraine on February 24, reaching an all-time high of $4,075.50 on Monday, before falling to $3,300 on Wednesday. .
Russia supplies about 6% of the world’s aluminum. It is also a major producer of other metals, as well as the gas and coal used to fuel smelters.
Many companies have stopped using Russian products, which has caused a contraction in supply and large price increases for all raw materials.
The LME does not expect to resume nickel trading before Friday, having halted trading on Tuesday when a selling shock sent prices soaring above $100,000 a tonne.
Among other base metals, copper on the LME gained 1.2% to $10,126 a tonne; zinc fell 3% to $3,822.50; lead fell 2% to $2,357; and tin fell 0.6% to $43,955.