(Bloomberg) -- The world's most important metals are heading for the biggest weekly gains on record as Russia's invasion of Ukraine sparks a clamber for supplies.
Commodities markets from metals to oil and gas have been upended by the war in Ukraine as big corporates withdraw from Russia, lenders pull back from financing deals and the threats of new sanctions deter buyers.
A Bloomberg gauge of industrial metals has surged 11% this week, on course for the biggest-ever rise. Aluminum hit a fresh record on Friday, nickel surged as much as much as 7.8% to a decade-high and zinc is the most expensive since 2007.
It's getting increasingly difficult to transport commodities like metals since almost half of the world's container ships no longer go to Russia, a crucial supplier of aluminum and nickel. Soaring global fuel prices also are a headache for the market as production costs increase and pile pressure on smelters.
Read More: Commodities Soar as War Increases Anxiety Over Supply Shortages
Nickel has been among the biggest movers this week, jumping 16%, to trade at $28,255 a ton on the London Metal Exchange. Russia is a key source of the metal, crucial for electric-vehicle batteries and stainless steel. Aluminum rallied 13% this week, set for its best such performance. Zinc has risen 11%, while copper has also climbed to move closer to a record.
Even before the war, metal prices were soaring amid the global recovery from the pandemic, as demand roared back and suppliers were constrained. Yet Russia's invasion has propelled prices to a whole new level, piling more inflationary pressure on global markets.
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