Aluminum Price Balance

The war between Russia and Ukraine caused an increase in aluminum prices, as in many commodity prices.  Russia is one of the world's major aluminum producers.  With the war;  Many countries, especially the USA, the EU and the UK, began to impose economic sanctions against Russia.  If Russia's determination to invade continues, as it seems, the country will have difficulties in world commodity trade and will also hit this commodity chain.  However, the covid effect, which has intensified again with the support of China, which is a major raw material consumer, affects commodity prices as a decrease. This situation, which is reflected in commodity prices, also tests a new balancing. You can see the 12-year aluminum price chart below.

 Aluminum stocks registered with Lme decreased by more than half compared to the same month last year.  The search for a new balance in the supply-demand balance is moving in the direction of increase by making upward fluctuations in commodity prices.  The end of the war and the restoration of status will facilitate the restoration of the commodity trade.  However, the change in statuses and Russia's efforts to be excluded from world trade, at least for a certain period of time, force the search for a new balance along with commodity price increases.  The fluctuations experienced in this search for balance should be followed closely and purchases from lower levels should be ensured.  In this way, the damage caused by the rise of commodities to production will be overcome with the least damage.  Below you can see this week's aluminum price chart and fluctuations.