SHANGHAI, Oct 13 (SMM) - According to some news, the Biden government is considering a complete ban on imports of Russian aluminium as a response to the recent escalation in the Russia-Ukraine conflict. Previously, because aluminium is widely used in various fields such as automobiles, electronics and skyscrapers, western countries have not included Russian aluminium in sanctions. Affected by the news, LME aluminium once soared by 7% in overnight trading.
Due to the importance of Russian metal products in many fields in cars, skyscrapers, iPhones, etc., they have so far been free from sanctions. The White House is considering three options, a complete ban on Russian aluminium, raising the tariffs to punitive levels so as to enforce an effective ban or a sanction on Rusal, according to people familiar with the matter.
The move will have wide-ranging ramifications for the global aluminium market, and consumers, including the US, may need to rush to find other alternative sources.
Russia is the world's second-largest aluminium producer, accounting for about 6 per cent of global output, and Rusal is Russia's only primary aluminium producer, with an output of 3.76 million mt in 2021.
Aluminium is vital to most heavy industries, and the US’s imports of aluminium from Russia generally account for around 10 per cent of the country’s total aluminium import volume. Russia is the US’s third-largest aluminium supplier in August, data showed.
People familiar with the matter also said that the US government did not sanction Russian aluminium in the early days of the Russia-Ukraine conflict, because it was worried that the act would disrupt the global supply order. After the recent escalation of the conflict, the US decided to make some responses. However, in the eighth month of the Russia-Ukraine war, fewer Russian products are available for the US and its allies to ban after a series of sanctions against Russia enforced by the US.
The question of whether to ban Russian aluminium has been a hot topic in the metals industry in recent weeks. The LME (London Metal Exchange), the world's largest industrial metals exchange, is also considering banning the trading of Russian aluminium.
Alcoa, the largest US aluminium manufacturer, sent a letter to the LME last month saying the Russian aluminium deal should not be allowed. Although the West has not yet sanctioned Russian aluminium, Russian aluminium trading has long been shunned by some big buyers in Europe and the US because of the potential risks.
