LONDON (Reuters) – Aluminum rallied on Wednesday after four sessions in a row, but remained at a loss of 18 percent from the April peak due to concerns about the impact of US sanctions on Russian producer United Company Rusal.
Three-month aluminum in the London Metal Exchange rose 0.8 percent to $ 2,445 a tonne. The metal reduced almost a fifth of the seven-year highs of $ 2,718 a tonne it reached in mid-April.
Metal prices, used in a variety of products ranging from food cans to aircraft parts, fell sharply after the United States gave Rusal’s US customers Monday more time to comply with sanctions.
“If the sanctions had been applied to Rusal in its entirety, as seemed likely last week, it would have been very damaging to global supply chains,” said Capital Economics analyst Caroline Bain.
“Now that the conditions of sanctions have eased and that there is more time for the world to adapt to not using Russian metal (…) prices have fallen again,” he added.