16 April 2018
Aluminium prices hit six year high of $2340 on Friday but ended 1.7% lower. However for the week the metal closed 11.9% higher its biggest weekly jump in 38 years.
Prices surged on back of US's imposition of sanctions on Russia's UC Rusal, the world's second biggest producer of the metal, raising supply concerns.
Traders scrambled to stockpile aluminium, given customers who can no longer take Rusal metal will have to find a fresh source of supply in what is an already fast-tightening market.
Signaling tightness in physical market the premium between LME Cash to three month jumped to more than a decade high of $52 even as inventories at LME jumped by 94450 tonnes or 7.6% on Thursday.
Stocks rose at LME warehouses as traders sought to deliver Rusal brand metal before the exchange's 17th April deadline. Meanwhile almost all the aluminium in the US was removed from Comex warehouses this week, as consumers scrambled to stock up anticipating further tightness in coming days