February 24, 2022

As of this writing (7:45AM CST), LME Aluminum 3M last traded at $3,443/mt, which is up about $149/mt on the day, or 4.5% this morning and poised to have its close since July 2008. Likewise, LME Nickel 3M last traded at $25,270/mt, up $780/mt on the day, or about 3.1%, the highest levels since 2011. LME metals prices are rallying this morning after Russia invaded Ukraine. Market participants are concerned that further sanctions on Russia by the US and other allies could hurt supplies of aluminum, nickel and other metals. Some European aluminum and nickel producers have stopped or cut back production as high electricity and natural gas costs made production unprofitable. More production could be curtailed if electricity and natural gas costs escalate further. (2/24/2022)   

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AEGIS Insights

02/16/2022: AEGIS Factor Matrices: Most important variables affecting metals prices

02/15/2022: Section 232 Tariffs: Most relevant developments (AEGIS Reference)

11/30/2021: Will the Omicron COVID Variant Impact South African Metals Production or Exports?

2/24/2022: Stocks slump, oil rips past $100 as Russia invades Ukraine

2/23/2022: Russia’s Putin announces military operation in Ukraine

2/23/2022: Statement by President Biden on Nord Stream 2

2/22/2022: Nickel price hits decade high as Ukraine tensions fuel supply concerns

2/22/2022: Biden responds with limited sanctions after Putin recognizes breakaway Ukraine regions

2/22/2022: U.S. imposes sanctions after Putin recognizes breakaway Ukraine regions

2/21/2022: Statement by Press Secretary Jen Psaki on Russian Announcement on Eastern Ukraine

2/21/2022: FACT SHEET: Executive Order to Impose Costs for President Putin’s Action to Recognize So-Called Donetsk and Luhansk People’s Republics

2/21/2022: Aluminum shortages to deter blanket sanctions on Rusal