Due to the shortage of aluminum supply, the EU and US are unlikely to impose extensive sanctions on RUSAL even if Russia launches military action against Ukraine as it would exacerbate aluminum shortages, boost prices to record highs, and injure their own manufacturing.
RUSAL, the biggest aluminum producer outside China, accounts for about 6% of the global aluminum supply. Analysts estimated that its supply would be around 70 million tons this year.
LME aluminum prices once hit US$3,333/ton last week, close to the record high of US$3,380.15/ton hit in July 2007, due to market concerns about losing supplies from RUSAL.
Macquarie expected the aluminum market to have a shortage of 1.8 million tons this year after a deficit of 1.5 million tons in 2021. LME aluminum inventories have reduced by more than 50% since last March, reaching 855,525 tons.
EU & US unlikely to impose extensive sanctions on RUSAL due to aluminum supply shortage
22 Feb 2022 15:42 reported by Joy Liu
- A
- A
- A