Aluminium on the London Metal Exchange closed above $2,400 per tonne on Tuesday April 17 for the first time since September 2011, continuing its strong momentum triggered by the United States imposing sanctions against Russian aluminium producer Rusal.
The light metal has been the most active across the complex since the sanction announcements on Friday April 6, recording daily high-low ranges of up to $130. Volumes remained moderately high, reaching 27,000 lots despite last week's average of more than 35,000 lots. With Rusal metal currently under strict oversight, the LME announced details on Monday specifying open contract positions with Rusal subject to strict guidelines limiting profit-making. "As sanctions take immediate effect, the Russian supplier has been shut out of the Western financial system, crushing its share price," John Meyer, analyst at SP Angel said. "Shares in rival suppliers have climbed, with...