Copper and aluminum prices fall after Russia’s exclusion from energy sanctions

Aluminum prices retreated from record levels on Friday as energy supply fears eased after Russia’s energy sector was excluded from Western sanctions, while the copper fell slightly.

Aluminum, the most energy-intensive metal to produce, had soared on fears of rising energy costs and concerns that supply from top producer Russia would be hit after Ukraine’s invasion.

Three-month aluminum on the London Metal Exchange fell 2.3% to $3,315 a tonne by 11:15 GMT, falling away from an all-time high of $3,480 hit on Thursday. In weekly terms, prices are up 2.3% so far.

“Since the sanctions didn’t really affect energy flows, they didn’t affect (President Vladimir) Putin personally, the risk premium is deflating a bit.said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

The United States, Britain and other Western nations have imposed new sanctions on Russia, but an official said Washington’s sanctions “do not and will not target oil and gas flows”.

Russia produces about 6% of the world’s aluminum and accounts for about 7% of the world’s supply of nickel. It is also one of the main producers of gas used to generate electricity, a major component of aluminum production.

Nickel on the London Metal Exchange fell 2.2% to $24,175 a tonne, after hitting its highest since 2011 in the previous session.

Meanwhile, copper fell 0.3% to $9,832 a tonne, zinc fell 0.9% to $3,608.50 and tin fell 0.3% to $45,050.

With information from Reuters