Aluminium emerged as the top performer among base metals last week, with a significant increase in prices driven by sanctions and shortages. The European elections also brought about a clear rejection of the status quo, particularly in France and Germany, prompting self-proclaimed centrist parties to reconsider their strategies.
The surge in aluminium prices, with a gain of approximately 4.27% in the LME 3-month cash prices, was attributed to the dominance of long-term investors who are likely to continue supporting the metal due to sanctions on Russian aluminium and a global shortage of the commodity.
Following the European elections, the message was clear – ‘Business as usual’ is no longer acceptable. The dissatisfaction with the current EU Commission President and the shift towards right-wing ideologies in France and Germany indicate a need for change. The responsibility falls on self-proclaimed centrist parties to listen to the voters, acknowledge their mistakes, and adapt to the evolving political landscape.
In other news, China reported a 7.6% increase in exports in May, raising questions about the potential impact of a nickel export ban by Indonesia on the EU. The current volatility in nickel prices is also being attributed to profit-taking activities in the market.
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