Aluminium Sanctions: Latest Update
The price of aluminium has risen in what has been called 'a rocket-propelled charge' recently. This is due to global shock at US-impositioned sanctions against Russia, announced earlier this month by the US Treasury. LME, the London Metal Exchange, announced three-month figures that show aluminium has gained more than $500 in less than two weeks, bringing the price at the time of writing to $3,527 per tonne.
The sanctions on Oleg Derispaka and the UC Rusal aluminium empire have affected countries all over the world. Rio Tinto, the leading mining group, declared force majeure (a clause in contract freeing both parties from liability in the event of unavoidable circumstances beyond their control) on a number of raw material contracts and warned that 'adjustments' to its aluminium guidance could take place due to the sanctions.
Aluminium generally enjoys a well-filled supply chain but there are signs that this is cracking under the pressure. Supply fears are growing, an effect that is drawing market attention to China as a potential source of the versatile metal. Almost a million tonnes of aluminium, registered with ShFE (Shanghai Futures Exchange), is stored in Chinese warehouses and will 'flow out' of China 'if the price is right'.
As well as our main product base of stainless steel, BS Stainless also work with aluminium, particularly with our DryMet product range. We maintain a high stock level of the metal in order to control prices as much as we are able to, allowing us to continue supplying products of professional quality. As the market changes, we will continue with our dedication to delivering quality, cost-effective product at a competitive market price.
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