US plans to ban Russian aluminum
It will result in price hike and more profits for US industry
The United States is considering imposing a ban on Russian aluminum in response to the escalation of the war in Ukraine. The rocket attacks that Russia carried out on cities like Kiev in recent days were the direct cause.
Aluminum has so far been excluded from sanctions due to the importance of the metal species for the industry. The light metal is used, for example, in cars, as well as in construction and in the manufacture of electronics.
The White House is looking at other options for sanctions. There could be a ban on the use of Russian aluminum. Such a ban usually applies not only to US companies but also to companies active in the US market. Other options include imposing import duties so high that they actually amount to a ban and imposing sanctions on the Russian aluminum producer Rusal.
Whatever choice the U.S. makes, the impact on the global aluminum market could be significant. US companies and companies from other countries then have to look very quickly for replacement aluminum, which could drive up the price of the metal. The price of aluminum at the London Metals fair rose by more than 7 percent on Wednesday. Shares of the US aluminum companies Alcoa and Century Aluminum also shot up.
Russian aluminum accounts for about a tenth of all aluminum used in the United States. Russia is the second largest producer of the metal. Only China produces more.