Russian sanctions likely to alter US aluminium flow

Sanctions levied by the US Department of the Treasury last week against UC Rusal are expected to change the flow of aluminium supply in the United States, as buyers and sellers are grappling with what the absence of Russian supply will mean for the market.

Aluminium prices have soared following the sanctioning and freezing of the assets of Russian oligarch Oleg Deripaska and UC Rusal subject to US jurisdiction. The three-month aluminium contract on the London Metal Exchange closed at $2,122 per tonne (96.3 cents per pound) on Monday April 9, up 6.7% from the previous close of $1,988 per tonne (90.2 cents per pound). The daily cash price, meanwhile, jumped by 7.4% to $2,113 per tonne (95.8 cents per pound) at Monday's close from $1,967 per tonne (89.2 cents per pound) previously.

The US Midwest premium also appears to be trending upward, breaking a recent slide after it hit a 2018 high of 19-20 cents per lb in mid-March. The CME...


Kirk Maltais

April 09, 2018

21:19 GMT