Sanctions on Russia Aluminum Could Send Ripple Effects Through Global Supply Chains

Sanctions on Russia Aluminum Could Send Ripple Effects Through Global Supply Chains

Updated: 1 month, 13 days, 15 hours, 17 minutes, 50 seconds ago

Sanctions on Russia Aluminum Could Send Ripple Effects Through Global Supply Chains

Aluminum is the latest casualty of global economic headwinds as prices sink amid alleged dumping of Russian aluminum, weakening demand across the world including China and soaring operational costs.

Dim outlook for aluminumThe next quarter doesn't bode well either — unless there is some action to stop the potential dumping of Russia-origin metal and lift Chinese demand, both in infrastructure development and property construction, Tanners added. 

So far, there is little sign Chinese demand could improve quickly given that President Xi Jinping has signaled at the Communist party meeting in Beijing that China will be sticking to its Covid-zero policies, she added. This is exacerbated by softening demand elsewhere as interest rates rise, Tanners said.

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What happens if more buyers refuse metals like aluminum from Russia? The LME doesn't want to find outSpeculation that the U.S. is considering a ban on aluminum from Russia contributed to a brief spike in prices for the metal a week ago, but some consumers...

Russian President Vladimir Putin declares martial law in annexed regions of UkraineRussian President Vladimir Putin declared martial law Wednesday in the four regions of Ukraine that Moscow annexed and given additional emergency powers to the heads of all regions of Russia.

Putin declares martial law as Russian leader runs out of optionsThe Russian president said his decree applied to the four regions of Ukraine that Russia recently claimed it had annexed. I'm sure he has a few other options to explore. 💣 Martial Law In Russia’s Newly Reunified Novorossiyan Region Is The Right Move

Bringing Muppets to Moscow pitted ‘open society’ against ‘300 years of Russian thought’: Former producerFormer 'Sesame Street' in Russia executive producer and co-director Natasha Rogoff says the children show's values challenged '300 years of Russian thought.'

Putin declares martial law in annexed regions of Ukraine | amNewYorkRussian President Vladimir Putin declared martial law Wednesday in the four regions of Ukraine that Moscow annexed and gave all regional governors in Russia emergency powers that open the door for sweeping new restrictions throughout the country.

Putin declares martial law in annexed regions of UkraineRussian President Vladimir Putin declared martial law Wednesday in the four regions of Ukraine that Moscow illegally annexed and gave additional emergency powers to the heads of all regions of Russia. I don't know why but I think he's both a monster and a genius and he will get what he wants, if he hasn't already, and it's a bigger Russian operation than us Americans have imagined.

"So definitely this quarter reflected those challenges.Speculation that the U.Associated Press Oct 19, 2022 at 7:19 am Expand Russian President Vladimir Putin listens to Samara Region Governor Dmitry Azarov during their meeting in Moscow, Russia, Tuesday, Oct.October 19, 2022 Putin has not immediately clarified what steps would be taken under martial law in the four regions, but independent Russian news outlet Meduza said it may involve restrictions on travel and public gatherings, tighter censorship and broader authority for law enforcement agencies.

" Dim outlook for aluminum The next quarter doesn't bode well either — unless there is some action to stop the potential dumping of Russia-origin metal and lift Chinese demand, both in infrastructure development and property construction, Tanners added.  So far, there is little sign Chinese demand could improve quickly given that President Xi Jinping has signaled at the Communist party meeting in Beijing that China will be sticking to its Covid-zero policies, she added. is considering a ban on aluminum from Russia contributed to a brief spike in prices for the metal a week ago, but some consumers have already voluntarily chosen to avoid metals from the country.  This is exacerbated by softening demand elsewhere as interest rates rise, Tanners said. Putin didn’t immediately spell out the steps that would be taken under martial law, but said his order was effective starting Thursday. Aluminum producers such as U. News.S. These apply to the southern regions of Krasnodar, Belgorod, Bryansk, Voronezh, Kursk and Rostov, as well as territories of Crimea and Sevastopol, which Russia illegally seized.

producer Alcoa and many in Europe are also facing higher operational costs, mostly due to surging power prices, Tanners said.. “Those who are on the frontlines or undergoing training at firing ranges and training centers should feel our support and know that they have our big, great country and unified people behind their back.  "Power is about 30% of total costs for an aluminum smelter so they've just been absolutely squeezed in some of the European operations," Tanners said.  which the company had attributed to lower aluminum prices and higher costs of energy and key raw materials.S.  Like Tanners, he told CNBC's" " that"things could get worse in quarter four before it gets better. Advertisement Putin also didn’t provide details of the extra powers to be given to the heads of Russian regions under his decree."  Rising stockpiles a bad sign While the LME does not publish where aluminum is sourced when inventories rise, a rise in global stockpiles is a bad sign given that base metal prices have already been hit by recessionary concerns, said Vivek Dhar, CBA mining and energy commodities analyst. That’s led the London Metal Exchange (LME) to consider options to circumvent trading distortions potentially caused by a buildup of metals from Russia in its warehouses..

Any influx of Russian aluminum into LME warehouses also pose a more complex problem, Dhar said in a note.   "The LME price could trade at a discount to fundamentals if the exchange becomes a dumping ground for Russian metal," he said, adding that Russia accounts for about 17% of the world's aluminum production.S.” Advertisement.  "The LME is acutely aware of the problem."  And if the U. “There’s definitely chatter in the aluminum market, but a lack of clarity only contributes to uncertainty that keeps some buyers on the sidelines,” said Christopher Davis, price reporting director, Americas, at S&P Global Commodity Insights.S.

does go ahead with sanctions against Russian producer Rusal, it may have ramifications for global aluminum supply chains, ING economics commodities strategist Ewa Manthey said in a note on Wednesday. That would be “less drastic than sanctions or a full ban, which would have a more significant impact. Manthey said this was seen in 2018 when the U.S. AA said it would stop buying raw materials from, and selling its products to, Russian businesses in response to the country’s invasion of Ukraine. Treasury last imposed sanctions on Russian billionaire Oleg Deripaska and the companies he owned, including Rusal . Rusal is not only a major producer of primary aluminum, it is also embedded in global supply chains needed to make the metal, bauxite and alumina, she added.S.

"Rusal's 2018 sanctions affected operations in Guinea and Jamaica, while smelters in Europe struggled to secure raw material supplies," she said. Also on CNBC . The LME released a discussion paper on Russia metal on Oct.

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