Yuefeng Aluminum: Russian metal has been subjected to multiple rounds of sanctions or the impact of this sanctions is weaker
April 17, 2024
Yuefeng Aluminum Marketing Department said that since the "Russia-Ukraine conflict", the United Kingdom and other countries have been restricting Russia's metal market. In March 2023, the United States imposed a 200% tariff on aluminum produced in Russia and its processed products, and extended the tariff to products using Russian aluminum; In December 2023, the United Kingdom introduced legislation directly banning imports of Russian metals, including aluminum, copper and nickel. After the previous sanctions, the shipping channels of Russian metals have diversified. On the other hand, referring to April 2018, when the LME did not accept aluminum ingots produced by Rusal as delivery targets, Russian aluminum exports fell by about 70% in the month compared with the 2017 monthly average, while in May 2018 they were 21% higher than the 2017 monthly average. While the LME has a key role in the global pricing of metals, the vast majority of metals are traded among miners, traders and manufacturers without having to enter LME warehouses. As a result, being excluded from the deliverable brands on futures exchanges would not significantly reduce Russia's ability to export related metals. Russian metals continue to flow to China, or lead to the supply of aluminum, copper, nickel and other loose, while overseas shortage, domestic metal processing enterprises or benefit from lower costs, increased export demand.
