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.
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.