LONDON: Copper and aluminium eased in thin trade on Friday as some investors booked profits, though the potential for further Russian sanctions to fuel supply uncertainty lent support.
Benchmark three-month copper was down 0.4% at $10,303 per tonne in official trading activity, while aluminium shed 0.7% to $3,594.Russia, which invaded Ukraine in February, is a major producer of metals including copper, aluminium and nickel. It also produces gas which is turned into electricity that powers the production of metals in Europe.” There are many uncertainties in the market, which makes the short-term outlook a bit murky,” said ING analyst Wenyu Yao.
The potential for further sanctions against Russia, including sanctions on metal produced there or by its companies, has “the market on tenterhooks”, Yao said. Nickel, which spiralled out of control to hit record highs during a short squeeze earlier this month, was down 3.5% to $35,950 a tonne.
Prices for the metal on the Shanghai Futures Exchange hit their 20% upper limit on Friday, ending 11.5% higher at 250,840 yuan ($39,425).In London trade, the metal used in stainless steel and electric-vehicle batteries managed to stay within its 15% trading limit for the first time since Tuesday.
A gauge of industrial metals, which also includes tin, zinc and lead, was on track for its first weekly rise in three.” Funding pressure remains to the fore amidst dire liquidity,” said Alastair Munro at brokerage Marex.
PRICES SURGE: Commodity prices are on track for their biggest increase in over a century this year due to the pandemic, lockdowns, civil unrest, war, excess monetary and fiscal stimulus and broken supply chains that created “epic” inflation, BofA said.
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