"Aluminum and Corn Prices Also Rise... Supply Disruption Concerns Due to Ukraine Situation"

[Asia Economy Reporter Seo So-jeong] Amid the sharp rise in international oil prices due to the Ukraine crisis, prices of aluminum and corn, which have high dependency on Russia and Ukraine, are also expected to continue rising as concerns over supply disruptions increase.

According to the 'Overseas Economic Focus' released by the Bank of Korea on the 20th, international commodity prices are showing an upward trend due to increased risks related to the Ukraine crisis, with volatility significantly expanding depending on the development of the situation.

International oil prices have surged to the $90 range, the highest level since October 2014, as supply-demand imbalances persist based on Brent crude. Russia accounts for 12.1% of global oil production (as of 2020), and concerns over supply disruptions are driving oil prices higher.

European natural gas prices also hit an all-time high on December 21 last year due to Russia's suspension of natural gas supplies to Europe. Since then, prices have sharply declined due to expanded imports of liquefied natural gas (LNG) from the United States and other countries.

Prices of aluminum and corn, which have high dependency on Russia and Ukraine, are also continuing to rise amid growing concerns over supply disruptions.

Russia is the world's second-largest aluminum producer, accounting for 5.6% of global production, while Ukraine's corn exports account for 13.3% of the world's total.

Major institutions such as the Oxford Economics Foundation (OEF) in the UK predict that energy supply instability will continue for some time if risks related to the Ukraine crisis expand.

The Bank of Korea stated, "With supply already reduced due to last year's power shortages in China and recent abnormal weather such as La Ni?a, concerns over supply shortages for aluminum and corn are also expected to increase."

This content was produced with the assistance of AI translation services.