US’ sanctions on Russian aluminum to impact global market
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Update time : 2022-10-17 17:19:32
The US government is mulling to impose ban on Russia’s aluminum imports, which aroused worries on the global market, as Russia, the world's second-largest aluminum producer, has an aluminum supply accounting for about 6% of the global total output, totaling around 70 million tons.
The three options which the US is considering included a sanction on RUSAL, raising punitive tariffs, and complete sanctions against Russia’s aluminum ore. The impact which would be brought by the US’ sanction is as below:
First, if RUSAL is sanctioned, the company will be hard to use US dollars to do business, which would greatly affect the global aluminum trade. Sanctions could lead to a tight or short supply of aluminum in Europe. Besides, Russia would export much aluminum to China due to the sanctions, which might eventually result in a flood of China’s aluminum into other Asian markets.
Second, higher punitive tariffs imposed by the US on Russia’s aluminum ore could hit Russia's export profits, and US buyers should also have to find alternative sources. A short-term tight supply in the US would make end users pass the increased costs to US consumers.
Third, a complete ban on imports of Russia’s aluminum ore would benefit the local American industry, but the downstream industry and general consumers will suffer from the impact.
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