Aluminium supplies in Europe disrupt with Suez Canal maritime traffic jam
The large container vessel maritime traffic jam on the Suez Canal in Egypt has intensified the shortage of primary aluminium billet supplies in Europe, which resulted in higher premiums on 26th March 2021.
_0_0.jpg)
Suez Canal, an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez and dividing Africa and Asia and it also is the major route for shipments between Europe and Asia, has been occluded by the large containership Ever Given since 23rd March 2021, resulting in a maritime traffic jam of more than 100 vessels.
An industry professional commented: “I think the situation just sparked another level of worry; all we have been talking about across commodities and markets is the freight situation and how it has mucked things up.”
“We're seeing that, in aluminium, while there is metal around, it's in the wrong places. As soon as people heard about the Suez Canal situation the market turned bullish again because it's another logistical and freight problem,” the person added.
The maritime jam has erupted dread in the aluminium billet market in the region, where high freight rates have disincentivized such products arriving in Europe.
Earth Hour 2021: It’s importance and how we as individuals can contribute?
Next articleAluminium a metal of strategic importance to the nation and vital raw material for key industries, says BALCO Chief
Grow with
AL Circle
