The price of aluminum is approaching six years highest point. Previously, LME and CME both said they would no longer accept the metal of United Co. Rusal. This raises the market's concern about the supply of aluminum.
On Wednesday, the aluminum price of the London Metal Exchange rose to 3.5%, to 2277.50 $/ ton, which is only 13 dollars from its nearly five year highest in December. The price of aluminum has risen 1.6% today, and has risen 13% since last Thursday, the biggest four gain in 30 years.
Comex of LME and CME indicated that they would not accept metals from Rusal, a Oleg from Russia. Rusal is the second largest aluminum manufacturer in the world.
At the same time, the media reported that Glencore (Glencore) for the supply of approximately 50 thousand tons of aluminum declared force majeure. The source of these metals is Russia.
Last Friday, the US Treasury issued a new sanctions measure against Russia, and imposed sanctions against 38 Russian individuals and entities. The sanctions include Oleg Deripaska of Russian businessman, Alexei Miller of Russian Gazprom and CEO Andrey Kostin of Russian foreign trade bank. Earlier, the British side said that Russia had poisoned the former spies. Then, the European Union and the United States jointly announced the sanctions against Russia and drove the ambassador to Russia.
Moscow Kremlin has responded to the U.S. sanctions again later today, taking time to assess the latest U.S. sanctions and to analyze viable means of retaliation. According to the international Interfax, Russian Prime Minister asked the government to draft plans to support the sanctioned entities, and asked the government to prepare possible retaliatory measures.
Dvorkovich, Russia's deputy prime minister, said the Russian government will help those companies that are being sanctioned.