The world of many people fell into chaos on 24th February, when the Russian troops barged into Ukraine. This horror is still continuing to haunt the lives of millions of soldiers and civilians in Ukraine every day.
But the lives that are affected by this act of war are not limited to those in Ukraine. The whole world is suffering the changes brought forth by this conflict. The prices of various commodities, such as steel, tin, aluminum, copper, and crude oil, are touching the skies of indexes around the world.
One of the biggest reasons behind this price soaring is the numerous sanctions that are imposed on the Kremlin. Regimes such as the US, Japan, and Europe, are the ones that have imposed these sanctions. The fear of the impact of these sanctions and the panic of that fear is the key cause of this price increase in various commodities.
The commodities that are particularly feeling the impact of these various conflict-related factors are metals. Some of the metals whose prices are straight-up touching the sky are aluminum, copper, nickel, and palladium.
The changes are prices of these metals are clearly stated in the indicative measures of the London Metal Exchange, popularly known as LME. The London Metal Exchange reported an eye-opening 10 percent average increase in the prices of all metals.
As of the year 2022, the metals such as aluminum, copper, nickel, lead, and zinc are the highest gainers. To state an average, there is a more than a 20 percent YTD (year-to-date) increase.
Aluminum and Copper: Touching the skies
Russia holds, exports, and produces more than 6 percent of the aluminum the whole world usage. With the increase of its conflict with Ukraine, the investors in these commodities from all around the world are panicking. The panic is making them sell out their holding and soar the aluminum prices.
As of now, the prices of Aluminum are a bit more than 24 percent of YTD, costing about $3,498 a ton. This increase in price has made the prices of appliances and other products that consist of aluminum go up by considerably high amounts.
Copper is one of the key materials that are used for making electrical wires and cables, due to their high conductivity. Russia is one of the largest exporters of copper in the world and it has halted its copper production. Therefore, the demand for copper had surpassed the current supply.
This has caused a massive surge in the YTD price of copper. Currently, copper is holding its price at $9,877 dollars a ton. Hence, increasing the prices of all the appliances and electrical gadgets that are manufactured using copper as their core.
The current ongoing manslaughter imposed on Ukraine by Russia is causing mayhem all around the world. The metal prices are just the tip of the Iceberg. Paraflex is a renowned manufacturer of wires and cables, and it stands along with all the other such manufacturers in the industry who hope for things to become normal once again.