Home » Global non-ferrous metal prices soar due to sanctions against Russia – Xinhua English.news.cn

Global non-ferrous metal prices soar due to sanctions against Russia – Xinhua English.news.cn

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Global non-ferrous metal prices soar due to sanctions against Russia – Xinhua English.news.cn

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Russia is an important non-ferrous metal producer and exporter in the world, rich in mineral resources, smelting output accounts for a large proportion, and domestic consumption is relatively small, mainly exported to Europe. Since the Russian-Ukrainian conflict, the United States and other Western countries have banned Russia for more than a day, which has caused turmoil in the international commodity market.

Russia is the world’s third largest producer of nickel metal, securing about 20% of the world’s nickel supply. After the escalation of the situation in Russia and Ukraine, Russia was subject to layers of sanctions by Western countries, causing market concerns. On March 8, the price of nickel metal exceeded US$100,000 per ton for the first time on the London Metal Exchange, which was called “unprecedented in history”. Nickel is a common industrial metal and is widely used in the production of stainless steel, nickel-based alloys, electroplating and batteries for new energy vehicles.

Russia is also one of the world’s important aluminum exporters. In 2021, Russia’s electrolytic aluminum production will be 3.7 million tons, accounting for 5.4% of the world’s total output, of which over 80% will be exported, mainly in Europe and Asia. On March 20, Australia announced a ban on exports of alumina and aluminum ore, including bauxite, to Russia. About 20% of Russia’s alumina supply comes from Australia, and Australia’s export ban will curb Russian aluminum production. As soon as the news came out, global aluminum prices rose sharply.

In addition to nickel and aluminum, Russia also occupies a key position in the global trade of other metals, such as palladium, copper, antimony and beryllium. For palladium, Russia is one of the most important producers of palladium, and its palladium mines account for 40% of the world’s total. Affected by sanctions against Russia, the price of palladium has also hit a new high recently. Palladium is widely used in catalytic converters used in automobiles, and if the supply is blocked, people can only use the more expensive platinum as an alternative.

See also  U.S. trains Ukrainian armed forces in Germany, Russian foreign minister: U.S. NATO is curbing and provoking Russia | Russia | Ukraine | Widodo

In addition, high energy prices will also lead to an increase in the smelting cost of non-ferrous metals. Therefore, the sharp rise in energy prices in Europe will also indirectly lead to a rise in the prices of metal commodities.

The negative impact of insufficient metal supply and price volatility is continuing to ferment and spread to the world’s major economies. The electronics and automotive industries in Europe and the United States are in trouble. Ultimately, U.S. and Western sanctions backfired on themselves.

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Responsible editor: Li Yuan

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