LONDON (Reuters) – The initial sanctions shockwaves may have passed but the aluminium market is still structurally stressed by the U.S. Treasury’s action against Oleg Deripaska and his Rusal aluminium empire.
The price explosion after the original April 6 sanctions announcement went into reverse on April 23, when the U.S. Treasury extended the deadline until October and held out an olive branch to Rusal (but not Deripaska).
After hitting a seven-year high of $2,718 per tonne on April 19 the London Metal Exchange (LME) aluminium price has retreated to a current $2,268. The market seems to be betting that Deripaska’s offer to reduce his stake in and remove himself from Rusal will result in a swift lifting of the sanctions that have roiled the supply chain. Continue Reading →