Aluminium Prices Plummeted as Russia Plans to Cancel Aluminium Export Tariffs

Published: Nov 5, 2021 16:00

Save

The news of Russia's cancellation of aluminium export tariffs caused shocks in the aluminium market yesterday. SHFE aluminium fell more than 7% as of 11:05.

SHANGHAI, Nov 5 (SMM)—The news of Russia's cancellation of aluminium export tariffs caused shocks in the aluminium market yesterday. SHFE aluminium fell more than 7% as of 11:05.

This decision to abolish aluminium export tariffs applies to Rusal. Rusal is the second largest aluminium supplier, accounting for 6% of global aluminium supply last year. Russia imposed a 15% export tariff (or at least $254/mt) on primary aluminium exports from August to December.

As early as October 18, Russia’s Interfax News Agency reported that the Press Service of the Ministry of Economic Development of Russia stated that the subcommittee on Tariff and Non-tariff Supervision supports the reduction of the export tariff rate for aluminium alloys to zero.

Russia will cancel aluminium export tariffs, which will increase global supply and directly push down premiums of Yangshan aluminium and overseas spot prices. The most-traded SHFE aluminium fell 5.39% while LME aluminium declined 4.93% overnight.
The total inventory of aluminium ingots and rods this week is 1.15 million mt, flat from last week. The actual inventory accumulation trend is coming to an end. If the total inventory of aluminium ingots and rods declines in the next week, aluminium prices are likely to rebound from low levels.

aluminium SHFE aluminium

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

23 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

23 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

23 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

23 hours ago