Aluminum prices saw a modest increase, climbing toward $2,600 per ton in London, amid news that the European Union is contemplating import restrictions on Russian metal. This move is part of a broader sanctions package aimed at Russia in response to its invasion of Ukraine, sources familiar with the situation revealed. The potential curbs on Russian aluminum may be implemented gradually, with details on the scope of the restrictions still under consideration.
Since the onset of the conflict, Russian aluminum shipments to Europe have already diminished, largely due to voluntary self-sanctions by manufacturers and a gradual reshuffling of global supply chains. As a result, much of the displaced supply has been redirected to China, which has more than doubled its imports of Russian aluminum in the past two years, now surpassing 1 million tons annually.
However, analysts suggest that any further disruptions to trade volumes may have minimal impact on the market, which has already adapted to these changes. “The market isn’t in urgent need of Russian aluminum,” stated Gao Yin, an analyst at Shuohe Asset Management Co.
In China, the aluminum industry is facing a pivotal year, with production growth set to slow due to capacity limits, reducing the amount of metal available for export. This, in turn, is expected to support aluminum prices, as China remains the world’s largest supplier of the metal, according to Shanghai Metals Market.
At 10:39 a.m. in Shanghai, aluminum traded 0.2% higher at $2,564 per ton on the London Metal Exchange. In contrast, other metals experienced declines, with zinc and copper falling by 0.4% and 0.3%, respectively.
Meanwhile, iron ore prices in Singapore rose by 0.2%, reaching $100.40 per ton, while Dalian contracts remained unchanged.
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