Russia-Ukraine conflict may affect global aluminium market, says Alcoa Corp.
Alcoa Corp., the largest aluminium manufacturer in the United States, cautioned investors on Wednesday that any confrontation between Russia and Ukraine might affect the global aluminium market. Any form of aggressiveness, according to Chief Executive Officer Roy Harvey, might affect supplies from Russia, the world's second-largest aluminium producer.
It might also lead to an increase in energy prices, which would have a knock-on effect on the aluminium sector due to the metal's high energy consumption. In response to a question about the hazards that a war would pose to the sector, Harvey stated that it may also disrupt demand.
“That can very quickly impact the supply,” Harvey said in a call with analysts.
President Joe Biden stated during a press conference on Wednesday that he believes Russian President Vladimir Putin will "move in" on Ukraine after amassing more than 100,000 troops on the country's border, but he did not rule out a full-fledged invasion. According to the US Geological Survey, Russia produced around 3.6 million metric tonnes of aluminium in 2020, matching it with India as the world's second-largest producer.
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