Rise in global prices of commodities including aluminum and nickel

MUMBAI: Prices of major industrial commodities manufactured and exported by Russian companies invading Ukraine have finally risen sharply, with aluminum and nickel prices hitting record highs.

While tensions are unlikely to ease in the near future, global prices of most commodities are still expected to rise. Global food inflation is expected to rise as a result of rising wheat and palm oil prices. Wheat prices hit a nine-year high. Palm oil prices hit record highs.

The movement of cargo ships in the European region has begun to be affected, with the country's importers worried that supplies will be disrupted in the coming days, an analyst said.

Aluminum prices rose to record highs on the London Metal Exchange. Aluminum futures were quoted at 6 a tonne. Nickel prices have also risen to બાદ 50 per tonne, the highest level since 2011.

Russia is the third largest producer of gold in the world after Australia and China. Russia's share in global gold mining is about 10 percent. The World Gold Council recently stated that 500 tons of gold was mined from Russia in 2021.

Russia also has a large production of diamonds. Last year, Russia's production of diamonds, with 5.61 million carats, accounted for about 40 per cent of global production. India, Belgium and UAE are the main importers of Russian diamonds.

Russia is also a major exporter of wheat. The war has also affected the movement of cargo ships through the Black Sea, which is likely to disrupt the supply of commodities. Palm oil prices rose by ૪ 30 a day to ૪૬ 150 a tonne.