Bloomberg: Aluminum rose to near the strongest level since 2008 as traders assessed the risk of geopolitical tension in Ukraine and the persistent pressure of soaring energy costs on global supplies.
High-level diplomacy continues in a bid to defuse the situation around Ukraine after western officials voiced reservations about Russian announcements that some of its forces are being drawn down. U.S. President Joe Biden was expected to talk with German Chancellor Olaf Scholz later Wednesday ahead of an emergency summit of European leaders on Ukraine the next day. Group of Seven foreign ministers will then meet in person in Munich on Saturday. The Kremlin has consistently denied it plans an attack.
Aluminum has led gains in base metals this year with an advance of 15%, as rising fuel costs and environmental curbs snarl supply in Europe and China. Stockpiles held by the London Metal Exchange shrank again on Wednesday, alongside most other metals. Copper inventories rose 7.6% from the lowest since 2005, signaling some relief for the incredibly tight market.