LONDON, Feb 24 (Reuters) – Aluminium costs on the London Metallic Alternate shrugged off a call by the US to impose steep tariffs on Russian steel on Friday, although merchants mentioned costs would have jumped if the U.S. had imposed sanctions as a substitute.
One 12 months on from Russia's invasion of Ukraine, the US mentioned it will impose a 200% tariff on aluminium produced in Russia from March 10, successfully a ban on Russian aluminium imports to the nation.
Benchmark aluminium on the London Metallic Alternate (LME) was down 2.2% at $2,342 a tonne at 1730 GMT after touching $2,321.5, its lowest since January 9.
“The sport-changer would have been if the U.S. had imposed sanctions on Russian aluminium,” an aluminium dealer mentioned. “Sanctions would have meant that not many (customers or merchants) elsewhere on the earth would contact Russian aluminium.”
Russian aluminium producer Rusal (RUAL.MM) accounts for about 6% of worldwide provides estimated at round 70 million tonnes this 12 months.
Newest Updates
View 2 extra tales
Rusal declined to remark.
In 2018, U.S. Treasury Division sanctions on Rusal froze the majority of the corporate's exports, paralysed its provide chain and scared off prospects. The U.S. lifted these sanctions on Rusal early in 2019.
The sanctions imposed in 2018 triggered a spike in LME aluminium costs and within the duty-paid bodily premium paid by patrons within the spot market in the US on high of the LME costs.
U.S. aluminium premiums at round $650 a tonne are up greater than 40% since October when speak of tariffs on Russian steel started.
U.S. imports of unwrought aluminium and alloys from Russia amounted to 191,809 tonnes, or roughly 4.4% of the greater than 4.4 million tonnes complete final 12 months, in contrast with 8.9% in 2018 and 14.6% in 2017, in accordance with Commerce Knowledge Monitor.
“(U.S.) import levies on Rusal's aluminium unlikely to make any actual distinction to the market in the US,” an analyst at a commodities centered funds mentioned.
“Aluminium and different base metals are fully centered on the macro image as we speak. The greenback is having run and that is not good for metals.”
Reporting by Pratima Desai and Polina Devitt; modifying by Elaine Hardcastle
: .