Aluminum and nickel briefly jumped after the US President Joe Biden said the US plans to unveil a major sanctions package against Russia on Friday following the death of opposition leader Alexey Navalny. Aluminum prices on the London Metal Exchange rose as much as 1.8%, while nickel gained up to 1.3% after Biden’s comments Tuesday to reporters at the White House.
Biden didn’t comment specifically on which industries would be targeted, but traders have been on the lookout for potential new restrictions on Russian metals after the UK moved in December to block British individuals and entities from trading physical metals including aluminum, copper, and nickel from Russia. At the time, the UK also hinted at the possibility of coordinated action with international partners. Up until then, Russian metals had escaped broad sanctions.
White House spokesman John Kirby said in a briefing earlier Tuesday that sanctions would be designed to hold Russia accountable for what happened to Mr. Navalny. US National Security Advisor Jake Sullivan said the substantial package of financial penalties would cover different elements of the Russian defense-industrial base and sources of revenue for the Russian economy that fuel Russian President Vladimir Putin’s war machine and repression.
The two metals definitely jumped on news that the US may sanction Russia over the death of Navalny, said Xiaoyu Zhu, a trader at StoneX Financial Inc.
Earlier Tuesday, aluminum sunk to a four-week low while nickel slid amid lingering uncertainty about global demand.
