US sanctions against Russian aluminum will affect the global market

The US government is considering a ban on aluminum imports to Russia, which has caused concern in the global market, as Russia, the world's second largest aluminum producer, supplies aluminum, which accounts for about 6% of the world's production, which is about 70%. million tons.

The three options being considered by the US included sanctions against RUSAL, increased punitive duties, and full sanctions against Russian aluminum ore. The consequences that may be caused by US sanctions are as follows:

First, if RUSAL falls under sanctions, it will be difficult for the company to use US dollars to conduct business, which will greatly affect the global aluminum trade. Sanctions could lead to a shortage of aluminum in Europe. In addition, because of the sanctions, Russia will export a lot of aluminum to China, which could eventually lead to a flow of Chinese aluminum to other Asian markets.

Second, higher punitive duties imposed by the US on Russian aluminum ore could hurt Russia's export earnings, and American buyers will also have to look for alternative sources. Short-term supply shortages in the US will force end users to pass on increased costs to US consumers.

Third, a complete ban on imports of Russian aluminum ore would benefit the local American industry, but the processing industry and ordinary consumers would suffer.