EU’s sanction on Russia heats up aluminium price in transnational market
European Union’s sanction against Russia has unfolded numerous speculations about future trade scope among countries and continents. The EU’s proposal states a one-year phase-in period, with 275,000 tonnes exempted during this transition. This would mean a further decline in the import of Russian primary aluminium. On the one hand, in 2023, 500,000 tonnes were imported from Russia into the EU, on the other, the figure declined to 330,000 tonnes in the period of January to November 2024. The ripple effect of the uncertainty around the trade front has inevitably hit the market pricing segment as well.
Pricing trend analysis
Aluminium prices hiked 0.18 per cent to INR 253.9 (USD 2.90), owing to supply concerns post the European Union’s (EU’s) decision to phase by phase ban Russian aluminium imports. In the meantime, the US Federal Reserve has not changed its interest rates, noting that cuts would only come when inflation and job data support easing. The Chinese market has remained shut for the Lunar New Year until February 5, limiting immediate demand signals from the world’s largest consumer. According to the International Aluminium Institute, global primary aluminium production rose 3 per cent Y-o-Y in December to 6.236 million tonnes.
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