Nickel and aluminum rose to record highs. Prices for a wide range of goods are expected to rise

Metals such as nickel and aluminum continue to reach new highs on the international market, according to CCTV.com. Russia is a major exporter of nickel and aluminum, and recent events have led to a sharp rise in prices for various metals.

The price of nickel on the London Metal Exchange (LME) exceeds $25,000 per ton. This is a new record in almost a decade. After rising 25% in 2021, nickel prices are up about 18% this year. Nickel inventories in LME warehouses fell to 82,300 tons from more than 260,000 tons in April last year. The price of aluminum on the London Metal Exchange also reached its highest level since 2008. After rising 42% in 2021, aluminum prices are up about 17% this year. Inventories of aluminum in LME warehouses fell to 835,100 tons from almost 2 million tons in March last year.

Russia is the world’s largest exporter of aluminium, nickel, palladium and platinum, according to the Shanghai Shenyin & Wanguo Securities Research Institute. Exports of aluminum, nickel, palladium and platinum from Russia account for 12%, 7%, 26% and 4% of world exports respectively. In addition, aluminum, nickel, palladium and platinum exports to Europe account for 16%, 42%, 45% and 36% of global exports to Europe, respectively. The production of magnesium ingots in Russia is about 8% of the global production.

Nickel and aluminum rose to record highs.  Prices for a wide range of goods are expected to rise

Ukraine supplies more than 90% of neon for semiconductors to the USA. This noble gas is essential for lasers used in chip manufacturing. Currently, 35% of the palladium in the US comes from Russia, which is mainly used in sensor and memory manufacturing. Russia is one of the suppliers of nickel, a key material for electric vehicle batteries.

The situation in these countries may have an impact on the global supply of non-ferrous metals, which, according to experts, will lead to an increase in prices for the corresponding products.

Source: ixbt

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