The suspension of cargo transport from and to Russia by three of the world's largest transportation companies has triggered an uptrend in industrial metal prices. As a result, Nickel soared to $25,705, an all-time high. Aluminum surged to $3,564, which is also a new peak.
In the metals market, even without geopolitical risk, there has been no lack of turmoil due to supply disruptions, low levels of physical inventories and robust demand. The shortage of supplies from Russia is dealing a painful blow to the global market for nickel and aluminum.
Russia accounts for about 7% of world supplies of nickel and 6% of aluminum. For the time being, there is no way to replace the loss of these volumes.
Going forward, the upside target for nickel is $26k, and $3,700 for aluminum.