The aluminum market faces a doomsday scenario if the US expands sanctions against United Co. Rusal in October, according to a Wood Mackenzie Ltd. report, which said prices could exceed their seven-year highs.
The market outside of China is already in deficit and will “run into huge deficit” if a Rusal-sized producer cannot supply the metal. “Prices will move to a level where the destruction of demand will not diminish,” he said, adding that buyers are starting to switch to alternative materials.
Aluminum increased in price in April after US sanctions on Rusal reshaped global supply chains that were already under pressure from lower production at Alunorte in Brazil. Billionaire Oleg Deripaska is in talks with the US authorities on a plan that will remove the threat of sanctions before October 23 expires. Prices are forecast to exceed their April highs.
Aluminum is waiting for "Doomsday" if sanctions against Rusal continue
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Azovpromstal® 11 September 2018 г. 10:58 |
