SHANGHAI, Apr 10 (SMM) – US sanctions on major Russian aluminiumproducer Rusal are not expected to lead to a global shortage, SMM believes.
LME aluminium jumped 2% on Monday April 9 to close at $2,082/mt as the market was concerned over Rusal’s supply of 7% of global aluminium, according to brokerage firm Argonaut.
Its data also showed that Rusal accounted for about 7% of global alumina output and 4% of global bauxite supply.
While the move will not cause a shortage, SMM senior analyst Liu Xiaolei believes it is likely to have an impact on the global aluminium supply landscape.
It remains unclear if US buyers will be able to find a substitute for their aluminium ingot demand. Spot premiums for North America are also likely to rise in a tighter market.
Liu added that LME aluminium prices are set to be supported in the short term.
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