Aluminium price soars after UK and US announce Russia ban

European Aluminium

The price of aluminium soared after the UK and US decided to ban the trade of Russian metals.

On Friday, the US Treasury Department and British government banned the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME) from accepting new Russian production of aluminium, copper and nickel.

“Aluminium from these brands produced prior to April 13, 2024, will continue to be eligible for warranting and delivery against the exchange’s aluminium futures contract,” the CME said.

“All participants must ensure their participation in delivery against the exchange’s aluminium futures contract complies with local laws and regulations, including applicable economic sanctions.”

Britain’s chancellor Jeremy Hunt said the ban would: “Prevent the Kremlin funnelling more cash into its war machine”.

The ban was as a result of Russia’s continued war in Ukraine.

Russia’s aluminium production counts for 5% of global supplies and there are worries it could affect production of some products, such as packaging. It is also used for cars, aeroplanes, foil and TVs.

Prices leapt more than 9% following the announcement.

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