(Bloomberg) — A broad rally in base metals markets is gathering pace, with tight supply, logistical logjams and booming demand creating an inflationary storm that’s driving prices to multiyear highs.
Aluminum notched a fresh 13-year high and nickel rose to the highest since 2014 in London. Both metals are benefiting from China’s crackdown on emissions from energy-intensive industries, while their role in the green revolution is buoying the longer-term outlook.
The surge in commodities, as well as soaring shipping and power costs, is fueling global consumer prices. China’s factory-gate inflation accelerated to a 13-year high, while U.S. consumer prices are forecast to rise by more than 5% for a third straight month.
That could push Chinese policymakers to redouble their efforts to quench surging prices after moves to curb speculation in commodities futures and sell state reserves yielded mixed results.
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