Aluminum prices eased with statements from Russia

While aluminum reached its highest point after 2008 due to geopolitical risks and supply problems, this week it turned down and became stagnant after the easing of tensions.

Russian President Vladimir Putin stated that he hoped to reach a diplomatic solution and announced that they would withdraw thousands of soldiers from the Ukrainian border. While this news caused a wide-scale rise in the markets, it also reduced the concerns that there may be a deterioration in the supply of metals from Russia due to the sanctions decisions to be taken after a possible military intervention.

Rising fuel costs and environmental constraints complicate sourcing in Europe and China, with aluminum rising 14 percent among base metals in 2022. Aluminum spot prices hit the highest level since 2018 on the London Metal Exchange (LME) this week, indicating problems with instant supply.

Jinrui Futures Co. Ltd. In a note, he stated that the supply problems caused by the pandemic in China, which is the world's largest producer and consumer, and the restrictions applied during the Beijing Winter Olympics support prices.

In addition, inflation in China slowed in January, giving the central bank more quantitative easing before the important political leadership meeting to be held this year. The outlook for further monetary policy easing is supportive for metals.

Three-month-term aluminum followed a fluctuating course and traded at $3,204 per ton in the morning. While prices reached $3,333 per ton last week, this figure is the highest seen since 2008's record level of $3,380.